Sam Walton is the founder of retail giant, Wal-Mart. Walton started with a chain of about 15 stores and jumped on the discount retail bandwagon in the sixties with great success. In 1958, he was named by Forbes magazine as the richest man in America. With 39% of his company\u2019s stock holdings, Walton secured a place for himself in retail history.<\/p>\n
1. Discount Retailing<\/strong><\/p>\n Traditional retailers were not happy about businessmen, like Sam Walton, who were looking to make a name for themselves in the discount retailing world not only because they didn\u2019t want to give up control of the market place but because it meant a loss of customers.<\/p>\n 2. First Wal-Mart<\/strong><\/p>\n Walton was a relatively successful businessman when he seized the opportunity to make a name for himself in the discount retail business. On July 2, 1962, at the age of 44, he opened his first Wal-Mart store, in Rogers, AR. That same year, S.S. Kresge launched K Mart, F.W. Woolworth started Woolworth and Dayton Hudson began its Target chain.<\/p>\n 3. Business Strategy: Cut Costs<\/strong><\/p>\n Walton\u2019s business strategy was simple: cut costs. He looked for every opportunity available to cut his costs including eliminating the middle man, lowering manufacturer\u2019s profit margins and making sure that the price on store shelves reflected the costs cut.<\/p>\n 4. Setting Up Shop Strategically<\/strong><\/p>\n Walton began opening stores wherever he had the opportunity to set up shop. He would fly over potential sites and survey the land. He thought hard about where to set up shop, making sure that he built at intersections and between towns.<\/p>\n 5. Computerized Operations<\/strong><\/p>\n Walton realized early on that the key to making his business grow at the fastest rate possible was to learn how to computerize merchandise controls in his operations. Computerized operations allowed Walton\u2019s business to become the icon of just-in-time inventory control and sophisticated logistics which ultimately gave Wal-Mart a competitive advantage.<\/p>\n 6. Richest Man in America<\/strong><\/p>\n Walton\u2019s business savvy made him the richest man in America according to Forbes magazine in 1985. He personified the American dream and his charisma made him an example to his employees.<\/p>\n 7. Spoiling Small Town Charm<\/strong><\/p>\n Alot everyone was happy about Wal-Mart\u2019s rapid growth and expansion. Wal-Mart surpassed its competitors and was demonized by those who had been negatively impacted by the success of Wal-Mart. Small town merchants were especially hard hit by the low price leader. Wal-Mart was given a reputation of being a spoiler of small town charm.<\/p>\n