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Wal-Mart International

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1 Wal-Mart International
This presentation is about Wal-Mart International.

2 Wal-Mart International
Doug McMilon , current President and CEO 1991 – Sam’s Club opened in Mexico 1992 – Wal-Mart International was created The CEO of Wal-Mart International is Doug McMilon. Previous CEOs have been Bob Martin, and Michael Moore. The first Wal-Mart store, Sam’s Club, was opened in Mexico City, Mexico in Then in 1992, Wal-Mart International was created to direct operations outside of the United States.

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75% of international stores known by names other than Wal-Mart Pali – Costa Rica Todo Dia – Brazil Dispenza Familia – Central America Same goal: Save people money so they can live better. Due to the fact that many of the Wal-Marts in other countries were formed as a result of acquiring companies already in existence, 75% of the international stores are currently known by names other than Wal-Mart. For example: In Cost Rica the stores are called Pali; in Brazil they are called Todo Dia; and in Central America, they are referred to as Dispenza Familia. No matter what the stores are known by, they all have the same goal: to save people money so they can live better.

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Walmart International is a fast-growing part of Walmart's overall operations, with 4,112 stores and more than 680,000 associates in 14 countries outside the continental U.S. (Walmart Fact Sheet, 2010) Walmart International is a fast-growing part of Walmart's overall operations, with 4,112 stores and more than 680,000 associates in 14 countries outside the continental U.S. (Walmart fact sheet, 2010)

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MEXICO Sam’s Club in Mexico City Sales Sustainability Sam’s Club was opened in Mexico City, Mexico in In February of 2000, the name changed to Walmart de Mexico. In 2006, they received to “organize and operate a b ank in the country.” (Mexico Fact Sheet, 2011) “During 2009, the company achieved its highest sales ever at $269,397 pesos.” (Mexico Fact Sheet, 2011) Wal-Mart uses wind power to supply power to 348 stores, clubs, and restaurants in Mexico City.

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CANADA Established in 1994 Opportunity Sustainability In 1994, Walmart opened in Canada following the acquisition of 122 Woolco Canada stores. “Today, Walmart Canada does business with more than 7,700 Canadian suppliers to whom we pay more than $14 billion CAD annually. Walmart Canada also conducts supplier fairs to reach out further to Canadian suppliers and expand our range of local products. We have created hundreds of thousands of store and construction jobs since Walmart Canada was founded in 1994, and according to a Ryerson University Study, helped lower the cost of living for Canadians by as much as 10 percent in our first decade of operation.” (canada fact sheet, 2011) Walmart Canada continues to pursue the company’s three global sustainability goals: to be supplied by 100 percent renewable energy, produce zero waste and sell merchandise that sustains people and the environment. In September 2008, Walmart Canada implemented a zero waste program in its home office. In 2009, Walmart Canada opened its first environmental demonstration store and its first high-efficiency store. In 2010 the company opened its first zero waste store. Through Walmart Canada’s For the Greener Good program, today (they) have more than 1,000 pre-certified, environmentally responsible products on our shelves.” (canada fact sheet, 2011)

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BRAZIL 1995 – Established in SaoPaulo Opportunity Sustainability In 1995, Walmart opened 2 supercenters and 3 Sam’s Clubs in Sao Paulo. Since that time, they have acquired 258 more stores by purchasing other retail companies. “Walmart Brazil provides opportunities for local industry to export their products all over the world. Candies, corned beef, chocolate, crackers, towels, bed clothes, shoes, colored pencils, pet toys and furniture are some of the top items that Walmart Brazil exports to countries such as the United States, Canada, Mexico, Puerto Rico, Argentina, England, El Salvador, Costa Rica and Guatemala.” (Brazil Fact Sheet, 2011) “Walmart Brazil opened its first eco-efficient Supercenter in the city of Rio de Janeiro in Since then, the company has opened twelve eco-efficient stores and one distribution center. They are expected to reduce energy consumption by at least 25 percent, water consumption by 40 percent and greenhouse gas emissions by at least 30 percent.” (Brazil Fact Sheet, 2011)

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ARGENTINA 1995 – Began Operations in Avellaneda, Buenos Aires Opportunity Sustainability “The first supercenter in Argentina was built in November 1995, in Avellaneda, Province of Buenos Aires.” (Argentina Fact Sheet, 2011) “Walmart Argentina identifies and develops local companies so they can become productive, regional suppliers. Today, more than 160 of these companies are selling their products in Walmart stores, including products such as cheese, pasta, fresh eggs, milk, yogurt, desserts and ice cream.” (Argentina Fact Sheet, 2011) “In order to achieve our goal of reducing plastic bags, Walmart Argentina has created the first environmentally friendly checkout where we don’t give plastic bags to our customers. Our objectives are to: • Reduce plastic bags • Improve customer awareness in the importance of reducing plastic bags • Increase reusable bags sales Walmart Argentina saw 10,000 reusable bags sold in only 3 weeks through this program. In 2009, Walmart Argentina opened an eco-efficient prototype store featuring a combination of different refrigeration, lighting and air conditioning technologies that resulted in 25 percent more energy efficiency versus a 2007 baseline. This prototype will be replicated in nine more stores during 2010.” (Argentina Fact Sheet, 2011)

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CHINA 1996 – Began operations in Shenzhen Opportunity Sustainability “Walmart began its retail operations in China in 1996, with the opening of a supercenter and Sam’s Club in Shenzhen” (China Fact Sheet, 2011) “At Walmart China, opportunity means continuous engagement with customers, suppliers, our associates and the communities where we operate” (China Fact Sheet, 2011) “Walmart China continues to focus on building awareness, community involvement, in- store initiatives and supplier management” (China Fact Sheet, 2011)

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JAPAN 2002 – Began operations by purchasing Seiyu Community Sustainability In 2002, Walmart purchased a 6.1% stake in Seiyu, a major retailer in Japan. Then, in 2007, they purchased most of the rest of the shares to a total of 95.1%. They retained the name of Seiyu instead of Walmart. “At Seiyu, we know we can make the greatest impact by supporting causes that are important to our customers and our communities. In 2009, Seiyu raised and contributed more than USD $240,000 to support local communities and national non-profit organizations” (Japan Fact Sheet, 2011) “Seiyu started its Hummingbird Campaign in 2007 to encourage everyone to do whatever they can do to reduce the plastic bag consumption and make a positive impact on the problem of global warming. As part of this campaign, Seiyu has encouraged customers to use a "Bag for Life," or "My Bag," at all Seiyu stores, with a range of bags with a hummingbird logo available percent of Seiyu’s customers use their own bags as of December 2010.” (Japan fact Sheet, 2011)

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NICARAGUA, GUATEMALA, EL SALVADOR, HONDURAS, AND COSTA RICA 2005 – established operations Opportunity Sustainability “In September 2005, Walmart acquired a one-third interest in CARHCO from the Dutch retailer Royal Ahold NV. In February 2006, Walmart increased its interest to 51 percent and the name CARHCO was changed to Walmart Centroamérica. In December 2009, Walmart de México acquired the operation in Central America, and the company became Walmart de México y Centroamérica. Walmart is the largest retailer in Central America with more than 500 stores and nearly 30,000 associates in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica” (Costa Rica Fact Sheet, 2011) “Opportunity also means an assortment of employment benefits for associates, who also have access to solidarity associations. Individual associates receive rewards and recognition for length of service and exceptional job performance. Grassroots surveys reflect the public’s perception of Walmart as a source of good job opportunities. Most importantly, Walmart associates consistently recommend the company as a good place to work.” (Cost Rica Fact Sheet, 2011) “Through energy saving programs in 2009 we were able to save 15.5 million kilowatt hours, a benefit of USD $2.7 million. This energy saving is equivalent to the power consumption of approximately 5,200 Central American homes. For the first quarter of FY2011, Costa Rica saved almost 2 million kilowatt hours, equivalent to the power consumption of 640 Central American homes. Walmart Centroamérica recently opened its first parking lot with LED illumination in Costa Rica, at Hipermás Curridabat. In 2009, Walmart Centroamérica increased the amount of metric tons of cardboard and plastic recycling to 16,388 (a 10 percent increase compared to 2008). This prevented the harvesting of more than 248,000 trees and the use of 19,300 barrels of oil. For the first six months of 2010, 3,358 metric tons of recycled cardboard and plastic saved 51,391 trees and 3,681 barrels of oil.” (Costa Rica Fact Sheet, 2011)

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CHILE 2009 – Began operations in Santiago Opportunity Sustainability “In January 2009, Walmart acquired a majority in Distribución y Servicio D&S S.A., Chile's leading food retailer…. In November, D&S changed its tax ID to Walmart Chile.” (Chile Fact Sheet, 2011) “Last year, Walmart Chile created new jobs through the opening of Ekono and Super Bodega Acuenta stores.” (Chile Fact Sheet, 2011) “During 2009, Walmart Chile opened the first environmentally friendly supermarket in the country with energy efficient, state-of-the-art technology.” Chile Fact Sheet, 2011)

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INDIA Bharti Walmart Private Limited 2009 – first wholesale cash and carry facility Efficient supply chain Sourcing from India “Bharti Walmart Private Limited is a joint venture between Bharti Enterprises, one of India's leading business groups with interests in telecom, agri-business, insurance and retail, and Walmart, the world’s leading retailer, renowned for its efficiency and expertise in logistics, supply chain management and sourcing.” (India Fact Sheet, 2011) “The first wholesale cash-and-carry facility named “Best Price Modern Wholesale” opened in Amritsar in May 2009, a second in Zirakpur (Near Chandigarh), a third in Jalandhar and a fourth in Kota. The JV in India expects to open 10 to 12 Best Price Modern Wholesale stores and employ approximately 5,000 – 6,000 people over the next two years.” (India Fact Sheet, 2011) “The joint venture works with the existing supply chain infrastructure to help make it more efficient, thereby maximizing value for farmers and manufacturers on the one end and retailers, and in turn, consumers on the other. The supply chain operation supports farmers and small manufacturers who have limited infrastructure and distribution strength and help minimize wastage, particularly of fresh foods and vegetables. An efficient supply chain can play an important role in transforming farmers and small manufacturers into successful entrepreneurs.” (India Fact Sheet, 2011) “Major categories sourced from India include home textiles (including towels, shower curtains, bath mats, accessories, bedding sheets, and kitchen linens), apparel (including woven, knitwear and leather footwear), leather accessories, fine jewelry and house wares (including fine dining ware, home décor and tabletops). The main categories sourced from Sri Lanka are apparel, textiles and gifts.” (India Fact Sheet, 2011)

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LESS THAN SUCCESSFUL: Germany Korea In 1998, Walmart attempted to extend their business to Germany. But, for once, it just did not work. '‘ ‘As we focus our efforts on where we can have the greatest impact on our growth and return on investment strategies, it has become increasingly clear that in Germany's business environment, it would be difficult for us to obtain the scale and results we desire,’ Michael Duke, a vice chairman of Wal-Mart, said in a statement.” (Schaefer, 2006) Even the pillow cases Walmart attempted to sell in Germany did not sell because pillows in Germany are a different size than the ones in the USA. They also needed to operate in a German management style rather than the American style, which just did not translate! In 2006, they attempted to move into Korea, but also encountered problems and had to sell the stores they had acquired. Like other retailers, Walmart just could not adjust to Korean consumers and, thus, just could not survive.

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Newest Expansion: South Africa Walmart has purchased 51% of the shares of Massmart, a leading retailer in South Africa. Despite concerns by labor unions, it is expected to do well and become a “stepping stone” into other African countries.

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SUSTAINABILITY At Walmart, we know that being an efficient and profitable business and being a good steward of the environment are goals that can work together. Our broad environmental goals at Walmart are simple and straightforward: To be supplied 100 percent by renewable energy; To create zero waste; To sell products that sustain people and the environment Sustainability is something that is a goal in each country that Walmart enters. The goals are: To be supplied 100 percent by renewable energy; To create zero waste; To sell products that sustain people and the environment

17 References Walmart Press Release, “Saving people money so they can live better — worldwide” “Walmart and Its Suppliers Enter Environmental Program” x Walmart Fact Sheets,


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