Walmart Inc.
Walmart Inc. engages in the operation of retail and wholesale stores and clubs, ecommerce websites, and mobile applications worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club U.S. It operates supercenters, supermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; and ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites. It offers grocery items, including dry grocery, snacks, dairy, meat, produce, deli and bakery, frozen foods, alcoholic and nonalcoholic beverages, as well as consumables, such as health and beauty aids, pet supplies, household chemicals, paper goods, and baby products; and fuel and other categories. In addition, it is involved in the provision of health and wellness products covering pharmacy, optical and hearing services, over-the-counter drugs, and protein and nutrition products; and home, hardlines, and seasonal items, including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, and mattresses. Further, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Additionally, it operates digital payment platforms; offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access; and markets lines of merchandise under private and licensed brands. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.
What does it do?
Walmart is the world's largest retailer — think of it as the everything store you've probably already shopped at. You walk into one of their nearly 4,700 U.S. supercenters and can buy groceries, electronics, clothes, and medicine all under one roof. Beyond physical stores, Walmart also runs Sam's Club, a members-only warehouse where you pay an annual fee to buy things in bulk at lower prices. And increasingly, Walmart is competing with Amazon online, offering delivery, pickup, and a growing marketplace where other sellers list their products on walmart.com.
With a market cap near $1 trillion, Walmart is one of the most important companies in the world — when it reports earnings, it gives investors a real-time snapshot of how the American consumer is holding up. Right now, with inflation still on people's minds and consumers watching their spending closely, Walmart's low-price reputation is a genuine competitive edge that drives customers through its doors. Investors are also watching Walmart's transformation into a tech-powered retailer — advertising, data, and fulfillment services are quietly becoming serious profit engines alongside its traditional retail business.
How does it make money?
Walmart makes most of its money the old-fashioned way: selling goods in stores and online and keeping a thin margin on each sale. Last year it generated $706.4 billion in revenue, up from $674.5 billion the year before — that's roughly $1.9 billion in sales every single day. The Walmart U.S. segment is the biggest piece, but Sam's Club membership fees provide reliable recurring income, and the international business adds exposure to fast-growing markets like India through its Flipkart stake. Increasingly, Walmart Connect — its advertising business — is becoming a high-margin revenue stream, because brands pay to get their products in front of Walmart's massive shopper base both in-store and online.
Why do investors care?
The growth story here is really about Walmart evolving from a low-margin retailer into a data and services company layered on top of its retail foundation. Its advertising business is growing at double-digit rates and carries far better profit margins than selling groceries. Higher-income shoppers have been trading down to Walmart to save money, which expands Walmart's customer base in a way that rarely happens during good economic times. For all of this to work, Walmart needs to keep executing on e-commerce growth, convince advertisers to keep spending, and hold off Amazon in the battle for everyday shopping.
Deep Dive
MemberA full investor briefing on Walmart Inc. — history, leadership, risks, and outlook.