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 giant blue-and-yellow store where you can buy groceries, a TV, car tires, and a birthday cake all in one trip. It operates over 10,500 stores across 19 countries, plus a fast-growing online shopping business. In the US, its Walmart Supercenters are massive, often 24-hour stores that anchor towns across the country. It also runs Sam's Club, a membership warehouse where you pay an annual fee to buy things in bulk at lower prices — similar to Costco.
With $706 billion in annual revenue, Walmart is so large that its sales figures are sometimes used as a barometer for the health of the entire US consumer economy. Right now, investors care because Walmart is quietly transforming from a simple brick-and-mortar retailer into a data and advertising powerhouse — its ad business and membership programs are growing fast and carry much higher profit margins than selling cereal. In an uncertain economic environment, Walmart also benefits when consumers trade down from pricier supermarkets or boutique stores to save money.
How does it make money?
Walmart makes the vast majority of its money the old-fashioned way — selling products in stores and online, generating $706.4 billion in revenue last year, up from $674.5 billion the prior year, a growth rate of roughly 5%. Its US stores and e-commerce operations are the engine, but it also earns from Sam's Club membership fees, which are pure profit since members pay just to walk in the door. Increasingly, Walmart monetises the 255 million customers who visit its stores each week by selling advertising to brands that want to reach those shoppers — this 'retail media' business is growing at double-digit rates. It also earns from Walmart+, its subscription service (similar to Amazon Prime) that charges members around $98 per year for perks like free delivery.
Why do investors care?
The exciting story for investors is that Walmart is layering high-margin businesses on top of its enormous, low-margin retail base — meaning profits could grow much faster than sales in the years ahead. Advertising and membership revenue are far more profitable than selling groceries, so even small growth in these areas meaningfully boosts overall earnings. Flipkart, Walmart's Indian e-commerce platform, is another potential long-term win, giving it exposure to one of the world's fastest-growing consumer markets. For this to work, Walmart needs to keep gaining e-commerce market share, grow its ad platform, and retain Walmart+ subscribers without Amazon pulling them back.
Deep Dive
MemberA full investor briefing on Walmart Inc. — history, leadership, risks, and outlook.