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Table of Contents
What term is used to describe the idea that people try to control what others?
What term is used to describe the idea that people try to control what others think about them? impression management.
What is one advantage of having a higher social class that is seen through the combination of Macrosociology and Microsociology?
What is one advantage of having a higher social class that is seen through the combination of macrosociology and microsociology? Individuals with higher social status can manipulate their good reputations to get away with socially unacceptable behaviors.
Which of the following statements describes German people’s reactions to Walmart’s policy?
Which of the following statements describes German people’s reactions to Walmart’s policy that their employees smile at customers? German customers were offended. Marly has Asperger’s syndrome.
Which of the following sociologically explains why Amish female grocery clerks in Indiana refused to make eye contact with male customers?
Which of the following sociologically explains why Amish female grocery clerks in Indiana refused to make eye contact with male customers? Men in the United States interpreted their behavior in a way the women did not intend.
What are the 3 types of social control?
- direct control = punishments and rewards.
- indirect control = affectionate identification with non-criminals; and.
- internal control = conscience or sense of guilt.
SOC Chapter 4 Flashcards
Direct: Punishment is threatened or imposed for wrongdoing, and compliance is rewarded by parents, family, and authority figures.
Indirect: through identification with those who influence behavior, such as because his or her criminal activity might cause pain and frustration to parents and others with whom he or she is closely associated.
Internally: whereby a youth refrains from crime through conscience or superego.
definition [edit]
Social control theory posits that people’s relationships, commitments, values, norms, and beliefs encourage them not to break the law. Thus, as moral codes become internalized and individuals engage and participate in their broader community, they will voluntarily limit their propensity for deviant action. The theory tries to understand how it is possible to reduce the likelihood of developing delinquency in individuals. It does not consider motivational issues, but simply states that people may choose to engage in a wide range of activities unless the range is limited by socialization processes and social learning. The theory derives from a Hobbesian view of human nature as portrayed in Leviathan, i.e. that all choices are constrained by implicit social contracts, agreements, and understandings between people. This is how morality arises in the building of social order, by assigning costs and consequences to certain decisions and defining some as evil, immoral and/or illegal.[1]
Social control plays a crucial role in providing a more productive and harmonious community. It contributes to the growth of an individual and the progress of the community. For example, locations with higher crime rates tend to be locations where poverty, mobility, and racial/ethnic heterogeneity are most vulnerable. The presence of these factors determines the level of social control within a community, particularly when it comes to infrastructure placement. A higher level of social control in a community can lead to an organized community, which can lead to better opportunities in the community.[2]
Advocate[edit]
Albert J Reiss[ edit ]
Another early form of the theory was proposed by Reiss (1951)[3] who defined delinquency as “…behavior resulting from the failure of personal and social controls”. Personal control has been defined as “…the ability of the individual not to have needs met in a way that is contrary to community norms and rules,” while social control is “…the ability of social groups or institutions to make norms or rules effective.” Reiss’ version did not specify the sources of such “abilities” or the specific control mechanisms that led to compliance, but he did contend that the failure of primary groups, such as family, to reinforce noncriminal roles and values was critical to explaining the default, Reiss wrote also extensively on the application of his work to criminology.[4]
Jackson Toby[edit]
Jackson Toby (1957)[5] argued that “the unattached youth is a candidate for gang socialization.”[6] He acknowledged “gang socialization” as part of the causal, motivational dynamics leading to delinquency, but led the concept of the stakes in conformance to declare a “candidacy” for such learning experiences. He believed that everyone could be lured into crime, but most refused, believing they had too much to lose. The boys who had few stakes or investments in conformity were more likely to be attracted to gang activity. The notion of conformity fits very well with concepts used in later versions of social control theory.
F. Ivan Nye[ edit ]
Ivan Nye (1958)[7] not only elaborated a social control theory of delinquency, but also specified ways of ‘operationalizing’ (measuring) control mechanisms and relating them to self-reports of delinquent behavior. He formulated the theory after interviewing 780 young people in Washington state. The sample has been criticized for not representing urban environments and the individuals selected may have been more apt to unfavorably describe their families. Some feared that criminal activity was only mentioned in two of the questions, so the extrapolations to crime in general were considered uncertain. Like Reiss, he focused on family as a source of control. In addition, Nye specified three different types of control:
direct control = penalties and rewards
indirect control = loving identification with non-criminals; and
inner control = conscience or guilt.
Adolescence can be controlled directly by parental constraints that limit delinquency opportunity, and by parental rewards and punishments. However, when free from direct control, they can be constrained by their anticipation of parental disapproval (indirect control) or by the development of a conscience, an internal behavioral constraint. The focus at the time on the family as a source of control was in marked contrast to the emphasis on economic circumstances as a source of criminal motivation.[8] Although he acknowledges the motivating forces by stating that “…some criminal behaviors result from a combination of positive learning and weak and ineffective social control” (1958:4), he takes a control-theoretic position when he proposes that: “. ..most delinquent behavior is the result of inadequate social control…”
Walter Reckless[edit]
Walter Reckless (1961)[9] developed containment theory by focusing on an adolescent’s self-understanding or self-image of being a good person as an insulator against peer pressure to engage in crime.
inner containment = positive self-esteem;
outer containment = surveillance and discipline.
This inner confinement through self-image develops within the family and is essentially developed by around the age of twelve. External containment was a reflection of strong social relationships with teachers and other sources of conventional socialization within the neighborhood. The bottom line is that there are “spurts” and “puffs” that lead to delinquent behavior if not counteracted by containment. The motivations to deviate as pushes are:
dissatisfaction with living conditions and family conflicts;
aggressiveness and hostility, possibly due to biological factors; and
frustration and boredom, for example, from belonging to a minority or from not being able to advance in school or find employment;
and the moves are:
delinquent colleagues and
criminal subcultures.[10]
David Matza[edit]
An analysis of ‘neutralization’ was developed by Sykes and Matza (1957)[11] who believed that there was little difference between delinquents and non-delinquents, with delinquents exhibiting non-delinquent behavior most of the time. They also claimed that most delinquents eventually phase out of the delinquent lifestyle as they age, suggesting that there is a basic moral code but that the young are able to deviate from it through the use of neutralization techniques, i.e. they can die Temporarily suspending applicability of norms through the development of attitudes “conducive to deviant behavior”. The five common techniques were:
Denial of Responsibility (I couldn’t help it)
denial of injury (no one was hurt)
denial of sacrifice (they had let it come)
condemnation of the damners (what right do they have to criticize me?)
appeal to higher allegiances (I did it for someone else).
Later, Matza (1964)[12] developed his theory of “drifting”, which proposed that people use neutralization to drift in and out of conventional behavior and to take a temporary break from moral constraints. Matza based his “drift” theory on four observations:
Delinquents express feelings of guilt about their criminal acts
Delinquents often respect law-abiding individuals
A line is drawn between those who can bully them and those who cannot
Delinquents are not immune to the requirements of compliance[13]
Although this drift theory has not been widely supported by empirical testing, it remains a key idea in criminology, although it does not answer why some are compliant and others are not.
Travis Hirschi[ edit ]
Travis Hirschi adopted Toby’s concept of an investment in conventionality, or “stake in conformity”. He stressed the rationality of choosing to engage in a crime, arguing that a person would be less likely to choose a crime if they had strong social ties.
The general theory of crime[edit]
Hirschi has since moved away from his attachment theory, developing a general theory or “self-control theory” in 1990 in collaboration with Michael R. Gottfredson. Akers (1991)[14] argued that a major weakness of this new theory was that Gottfredson and Hirschi did not define self-restraint and criminal tendencies separately. Failure to consciously operationalize self-control traits and criminal behavior or acts separately suggests that the concepts of low self-control and criminal propensity are the same. Hirschi and Gottfredson (1993) refuted Aker’s argument by suggesting that it was in fact an indication of the consistency of the general theory. That is, the theory is internally consistent in conceptualizing crime and deriving from it a concept of the characteristics of the offender. The research community remains divided on whether the general theory is sustainable, but confirmation of some of its predictions is emerging (e.g. LaGrange & Silverman: 1999[15]).
Jack P. Gibbs[edit]
Gibbs (1989)[16] redefined and applied social control to develop a control theory of homicide. Any attempt to get a person to do or not do something can be viewed as an attempt at control. To qualify as “social” control, such attempts must involve three parties. One or more persons intend to manipulate the behavior of another person by or through a third party. Gibbs’ third party may be an actual person or a reference to “society”, “expectations” or “norms”. For example, when one party attempts to influence another by threatening to refer the matter to a third party believed to have authority, this is referential social control. When one party attempts to control another by punishing a third party (e.g., general deterrence), it is a form of vicarious social control. The presence of the third distinguishes social control from mere external behavioral control, simple interpersonal responses, or directing someone to do something. This definition clearly distinguishes social control from mere “reactions to deviance” and from deviant behavior itself.
Gibbs argues that “homicide can be described either as control or as a result of a failure of control” (1989:35), and suggests that the homicide rate is not just a function of the sheer volume of disputes, but also the frequency resorted to becomes a third party for peaceful dispute resolution (p. 37). When one person fails to control the actions of another through the third party, murder represents another violent attempt at direct control. People resort to self-help when forms of social control are unavailable or fail. Gibbs is critical of Hirschi’s theory of social control because it merely posits that social relationships, personal investments, and beliefs that prevent crime are social controls (which is one reason why Hirschi’s theory is often called the social attachment theory).
criticism [edit]
Much of the early research on social control theory is based on self-report studies. Critics of self-report data point out that there can be different motives for disclosing information and that questions can be interpreted differently by individual participants. Nevertheless, many of the conclusions are intuitively compelling, e.g. that individuals will not engage in crime if they believe it would sacrifice the affection or respect of significant others or result in loss of job or autonomy if they face imprisonment. Davies (1994 and 2004) reports that in late 19th-century Britain, crime rates fell dramatically, as did drug and alcohol abuse, and illegitimacy became less common. All of these deviation indices were fairly constant between WWI and 1955. After 1955 they all increased to produce a U-curve of deviation over the period 1847-1997. He attributes the initial shift to the adoption of a culture in which the assumptions of Protestant Christianity were taken for granted. Everyone back then believed, at least in part, in a moral code of helping others. This belief was rooted in religion. The same social norms for the defense of person and property that shaped pre-1955 law remain the political norms. Furthermore, the concept that people are uncontrollable and can violate these norms in social interactions cannot be explained simply by counting how many people practice the golden rule (see the general discussion in Braithwaite: 1989.)[17]
See also[edit]
References[ edit ]
Hirschi, T. (2002). Causes of insolvency. New Brunswick, NJ: Transaction Publishers.
Further reading[edit]
Which of the following statements best describes how stereotypes affect our interaction with others when we first meet?
Which of the following statements best describes how stereotypes affect our interaction with others when we first meet? Stereotypes are rarely important in social interaction.
SOC Chapter 4 Flashcards
role playing
background assumptions
stages
props
What does conflict theory argue about the role of schools in capitalist society?
Functionalists claim that schools sort based upon merit; conflict theorists argue that schools sort along distinct class and ethnic lines. According to conflict theorists, schools train those in the working classes to accept their position as a lower‐class member of society.
SOC Chapter 4 Flashcards
Functionalists point to other latent roles of education, such as instilling core values and social control. The core values of American education reflect those qualities that support the political and economic systems that originally encouraged education. Therefore, children in America receive rewards for sticking to schedules, following directions, meeting deadlines, and obeying authority.
The primary value permeating the American classroom is individualism—the ideology that advocates liberty rights, or independent action, for the individual. American students, unlike their Japanese or Chinese counterparts, learn early on that society seeks and honors the best individual, whether that person scores the best score on a test or the most points on the basketball court. Even joint activities focus on the leader, and team sports highlight the one Most Valuable Player of the Year. The carefully constructed curriculum helps students develop their identity and self-esteem. Conversely, in a culture that values community over individuality, Japanese students learn to be ashamed when someone singles them out, and learn social appreciation — how to bring honor to the group rather than to oneself.
American students attending school in a capitalist nation also quickly learn the importance of competition, both through competitive educational games in the classroom and through activities and sports outside of the classroom. Some sort of prize or reward usually motivates them to play, so students learn early on to associate winning with ownership. Likewise, schools openly teach patriotism, a preserver of political structure. Students must learn the Pledge of Allegiance and the stories of the nation’s heroes and exploits. Such is the need to instill patriotic values that mythology often takes over, with teachers repeating stories of George Washington’s honesty or Abraham Lincoln’s virtue, even though the stories themselves (like Washington’s confession to cutting down the cherry tree ) may not be true.
Another benefit functionalists see in education is sorting — separating students based on achievement. Society’s needs demand that the most capable people be inducted into the most important jobs. Schools identify the best-performing students early on. Those who perform best on classroom and standardized tests enter accelerated programs and college prep courses. Sociologists Talcott Parsons, Kingsley Davis, and Wilbert Moore referred to this as social placement. They saw this process as a useful function in society.
After the sorting has taken place, the next function of education, networking (making interpersonal connections), is inevitable. People in high school and college connect with those in similar classes and majors. This networking can become professional or remain personal. The most important role of education in this regard is matchmaking. Sociologists are primarily interested in how sorting and networking brings together couples with similar backgrounds, interests, education, and income opportunities. People attach so much importance to this function of education that some parents restrict their children’s college opportunities to ensure they attend schools where they can meet the “right” person to marry.
Functionalists point to the ironic dual role of education in both preserving and transforming culture. Studies show that students tend to become progressively more liberal throughout college and beyond as they encounter a variety of perspectives. For example, people with a higher level of education tend to be more liberal, while those with a lower level of education are more conservatist. Additionally, the heavy emphasis on research in most universities puts them at the forefront of knowledge shifts and, in many cases, value shifts as well. So while the primary task of education is to preserve and pass on knowledge and skills, education also has the task of transforming them.
A final and controversial function that education has taken on in the second half of the 20th century is as a substitute for the family. Many subjects such as career development, discipline, and human sexuality—once a domain of the family—now play a routine role in the school curriculum. Parents who reject this function of education often choose to homeschool their children or place them in private schools that support their values.
The Conflict Theory
Both functionalists and conflict theorists agree that the educational system practices sorting, but they disagree about how it does that sorting. Functionalists claim that schools are graded by merit; Conflict theorists argue that schools are sorted according to specific classes and ethnic lines. According to conflict theorists, schools train the working class to accept their position as a member of the underclass of society. Conflict theorists call this role of education the “hidden curriculum”.
Conflict theorists point to several key factors in defending their position. First, property taxes fund most schools; Therefore, schools in affluent counties have more money. Such areas are predominantly white. They can afford to pay higher salaries, attract better teachers, and buy newer texts and more technology. Students who attend these schools receive significant benefits by being admitted to the best colleges and being placed in higher-paying jobs. Students in less affluent neighborhoods who do not enjoy these benefits are less likely to attend college and are more likely to enter vocational or technical training. They also represent a far higher number of minority students.
Conflict theorists claim that not only does the economy favor the white rich, but so do school tests — particularly IQ tests, which schools use to sort students. They argue that the tests that claim to test intelligence actually test cultural knowledge and therefore carry a cultural bias. For example, a question might be: “Which of these elements belongs in an orchestra? A. Accordion B. Guitar C. Violin D. Banjo.” This question requires significant cultural knowledge, including what an orchestra is, how it differs from a band, and what instruments make up an orchestra. The question itself assumes they are exposed to a certain type of music favored by the white upper class. Exam experts claim they have rid modern exams of such culturally biased questions, but conflict theorists counter that cultural neutrality is impossible. All tests contain a knowledge base, and that knowledge base is always culturally sensitive.
Conflict theorists see education not as a societal benefit or opportunity, but as a powerful tool to maintain power structures and create a pliable workforce for capitalism.
The symbolic interaction theory
Robert Rosenthal and Lenore Jacobson conducted the pioneering study for this approach in 1968. First, they tested a group of students using standard IQ tests. The researchers then identified a number of students who they said were likely to show large increases in ability in the coming year. They informed the teachers of the results and asked them to watch and see if this increase had actually happened. When the researchers repeated the IQ tests at the end of the year, the students the researchers identified actually showed higher IQ scores. The importance of this study lies in the fact that the researchers randomly selected a number of average students. The researchers found that when teachers expected a specific achievement or growth, it happened. This phenomenon, where a false assumption actually happens because someone predicted it, is called self-fulfilling prophecy. For example, the stock market can be stable when values are rising. However, when investors are afraid of a market crash, they can suddenly sell their shares, causing the market to crash. The crash happened simply because investors feared it would.
Ray Rist conducted research similar to the Rosenthal–Jacobson study in 1970. In a kindergarten classroom where both students and teachers were African American, the teacher assigned students to desks based on ability; the “better” students sat at a table closer to her, the “average” students sat at the next table, and the “weakest” students sat at the furthest table. Rist discovered that the teacher assigned students to a table based on the teacher’s perception of the students’ abilities on the eighth day of class, without any form of testing to verify placement. Rist also found that the students the teacher perceived as “better” learners were from higher social classes, while the “weak” students were from lower social classes.
Rist observed the students throughout the year and found that the students who were closer to the teacher received the most attention and performed better. The farther a student sat from the teacher, the weaker the student’s performance. Rist continued the study over the next few years and found that the labels assigned to students on day eight of kindergarten followed them throughout their school years.
While symbolic interactionist sociologists can document this process, they have yet to define the precise process by which teachers form their expectations or how students can convey subtle messages to teachers about intelligence, ability, and so on.
How would you differentiate the micro level and macro-level approaches in the social sciences?
Sociological approaches are differentiated by the level of analysis. Macrosociology involves the study of widespread social processes. Microsociology involves the study of people at a more interpersonal level, as in face-to-face interactions.
SOC Chapter 4 Flashcards
key terms
Microsociology: Microsociology involves the study of people in face-to-face interactions.
: Microsociology involves the study of people in face-to-face interactions. Symbolic Interactionism: Symbolic interactionism is the study of communication patterns, interpretations, and adaptations between individuals.
: Symbolic interactionism is the study of the patterns of communication, interpretation, and adaptation between individuals. Macrosociology: Macrosociology deals with the study of widespread social processes.
Sociological approaches differ according to the level of analysis. Macrosociology deals with the study of widespread social processes. Microsociology involves the study of people on a more interpersonal level, such as in face-to-face interactions.
Macro and Micro Perspectives in Sociology: Just as scientists may study the natural world using different levels of analysis (eg, physical, chemical, or biological), sociologists study the social world using different levels of analysis.
The study of widespread social processes at the macro level has been the more dominant approach and has been practiced since the early days of sociology in the founding work of figures such as Emile Durkheim. For example, Durkheim studied the large-scale shift from homogeneous traditional societies to industrialized societies in which each individual played a highly specialized role. The tendency toward macrosociology is evident in the kinds of questions early sociologists asked: What holds societies together? How are norms (and deviations) established and managed by societies? Which factors lead to social change and what are the consequences of this change? Macrosociologists focus on society as a whole, as something that stands before and above the sum of individuals.
The study of social life at the micro level is a recent development (early and mid-20th century) in the history of the field and was pioneered by proponents of the symbolic interaction perspective, namely George Herbert Mead, Herbert Blumer, and Erving Goffmann. Mead was a pragmatist and behaviorist, which means several things.
For pragmatists, true reality does not exist “out there” in the real world. It “is actively created when we act in and towards the world. “People remember and base their knowledge of the world on what was useful to them and are likely to change what no longer works. “People define the social and physical “objects” they encounter in the world in terms of their utility to them. If we want to understand actors, we need to base that understanding on what people actually do.
Blumer built on Mead’s work. He believed that individuals create their own social reality through collective and individual action and that the creation of social reality is an ongoing process. Goffman addressed both Mead and Blumer in formulating the dramaturgical approach. He saw a connection between the acts people performed in their daily lives and theatrical performances. In social interaction, as in theatrical performance, there is an anterior region where the “actors” (individuals) stand on stage in front of the audience. Here the positive aspect of the idea of self and desired impressions is emphasized. There is a back region or stage, which can also be viewed as a hidden or private place where individuals can be themselves and step out of their role or identity in society. Face-to-face interactions are therefore a stage where people play roles and practice impression management (i.e., “saving face”). Other scientists have since developed new research questions and methods to study social processes at the micro level.
Micro and macro level studies each have their own advantages and disadvantages. Macrosociology allows for the observation of large-scale patterns and trends, but runs the risk of seeing these trends as abstract entities that exist outside of the individuals implementing them on the ground. Microsociology allows for this on-the-spot analysis, but may not take into account the larger forces affecting individual behavior.
Why is Walmart called Walmart?
But where does the name come from? Following the success of the Arkansas store, Walton decided to open multiple stores under “Wal-Mart Stores, Inc.” While there are no official records on the origins of the name, “Wal-Mart” was likely an abbreviation for Walton’s Market.
SOC Chapter 4 Flashcards
Almost everyone knows Walmart. It might not be everyone’s favorite retailer, but most would agree that it offers great discount options. Going to a Walmart is also very convenient as the retailer has stores all over the world. If you need something, you can probably find it at Walmart. Despite the familiarity, there’s one question most of us wouldn’t be able to answer – what does the name “Walmart” stand for? Also check out the weirdest things to buy at Walmart.
To find the answer to this question, we need to delve deep into the origins of the store. These days, Walmart bills itself as the “world’s largest retailer” — and that’s not an outlandish claim. According to Fox Business, the company employs 2.2 million people, including 1.5 million in the United States. It’s also the largest employer in the Fortune 500, so it might come as a surprise to learn that the business has humble beginnings.
Walmart was founded by Oklahoma resident Sam Walton, also known as “Mr. Sam.” Walton strived to provide great value and excellent customer service at Walmart, which grew out of a small dime store in Bentonville. In 1950, Sam Walton and his wife moved to Bentonville, where Sam Walton’s 5&10 on the plaza downtown, and their business was so successful that Walton opened the first Walmart in Rogers, Arkansas in 1962. This is what this store looked like.
But where does the name come from? After the store’s success in Arkansas, Walton decided to open several stores under “Wal-Mart Stores, Inc.” Although there is no official record of the origins of the name, “Wal-Mart” was likely an abbreviation of Walton’s Market. It’s pretty simple, just like the principles behind the now global retail chain.
It’s been a long time since Walton’s 5&10 opened. Today, Walmart is an international retail chain, with 5,993 of the company’s 11,348 retail locations falling under the Walmart International subsidiary, which operates in 27 countries. According to Fox Business, the company serves more than 260 million customers every week. It turned out that Sam Walton’s idea for a low-cost retail store was worth trying.
Is Walmart owned by China?
No, Walmart is not owned by China, nor has it been sold to a Chinese investment group. According to USA TODAY fact check, a claim that Walmart had been sold to a Chinese firm was proven false. On Jan. 2 2021, a Facebook post claimed a Chinese business group bought out America’s largest retailer.
SOC Chapter 4 Flashcards
What started as a small shop has grown into a huge company with the motto “Save money. Live Better” lives. Today, the retail chain offers products in different departments such as household and furniture, food and electronics.
But has Walmart’s ownership changed since its humble beginnings in the American South?
Sam Walton was the founder of Walmart, but who owns Walmart today?
Since opening in 1962 in Rogers, Arkansas, Walmart has grown to approximately 10,500 stores and Sam’s Clubs in 24 countries.
Rated: Walmart and Gap’s new home decor for kids is playful, fun and available now
For Walmart Shoppers: The Best Credit Cards for Saving While Shopping in 2022
Who Owns Walmart?
The Walton family remains the majority shareholder of Walmart Inc. The children of Walmart founder Sam Walton own about half of all Walmart stock, according to official company documents.
The current CEO and President of Walmart Inc. is Doug McMillon, who assumed the position in 2014, according to his biography on Walmart’s website.
John Furner is the CEO and President of Walmart U.S., where he oversees the country’s 4,700 stores, as well as its website, app and supply chain, according to his biography on Walmart’s website.
The Walton family remains the majority shareholder of Walmart Inc., with the remainder of the stock being dispersed across the market.
Just out of curiosity: We help with the everyday questions of life
Is Walmart owned by China?
No, Walmart is not owned by China nor has it been sold to a Chinese investment group.
According to USA TODAY’s fact check, claims that Walmart was sold to a Chinese company have been proven false. On Jan. 2, 2021, a Facebook post claimed that a Chinese corporate group had bought America’s largest retailer. That’s wrong.
As previously noted, the Walton family still owns a majority stake in Walmart, and the remaining shares are “spread widely across the market, with no single company owning more than Vanguard’s approximately 5%,” according to Fact Check.
Fact check: No, Walmart was not sold to a Chinese investment group
Who is Walmart’s largest shareholder?
Walmart’s largest shareholder is the Walton family, which owns more than half of all Walmart stock. Walmart’s second-largest shareholder is the Vanguard Group, which owns around 5% of all Walmart stock.
Walmart became a public company in 1970, and its first stock sold for $16.50 a share, according to its company website.
More About the Walton Family: Denver Broncos are reportedly set to be sold to Walmart heir Rob Walton for a record $4.65 billion
This article originally appeared on USA TODAY: Who Owns Walmart? A look at the company’s largest shareholders.
What was Walmart called before Walmart?
Logo since 2008 | |
---|---|
Headquarters (“Home Office”) in December 2012 | |
Formerly | Wal-Mart Discount City (1962–1969) Wal-Mart, Inc. (1969–1970) Wal–Mart Stores, Inc. (1970–2018) |
Type | Public |
Traded as | NYSE: WMT DJIA component S&P 100 component S&P 500 component |
SOC Chapter 4 Flashcards
This article is about the retail chain. For other uses, see Walmart (disambiguation)
Walmart Inc. ( ; formerly Wal-Mart Stores, Inc.) is an American multinational retail company that operates a chain of hypermarkets (also called supercenters), discount department stores and grocery stores from the United States, headquartered in Bentonville, Arkansas. [9] The company was founded in 1962 by Sam Walton in nearby Rogers, Arkansas and incorporated under the Delaware General Corporation Law on October 31, 1969. It also owns and operates Sam’s Club retail warehouse.
As of April 30, 2022, Walmart has 10,585 stores and clubs in 24 countries operating under 46 different names.[3][12] The company operates under the Walmart name in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, and as Flipkart Wholesale in India. It has wholly owned operations in Chile, Canada and South Africa. As of August 2018, Walmart held a minority stake of 20 percent in Walmart Brasil, which was renamed Grupo Big in August 2019, and private equity firm Advent International held an 80 percent stake in the company. Finally, they sold their stakes in Grupo Big to French retailer Carrefour in a BRL 7 billion transaction that closed on June 7, 2022.[13]
According to the May 2022 Fortune Global 500 list, Walmart is the top-grossing company in the world with annual sales of approximately $570 billion. It is also the largest private employer in the world with 2.2 million employees. It is a publicly traded family business as the company is controlled by the Walton family. Sam Walton’s heirs own more than 50 percent of Walmart through both their holding company Walton Enterprises and their individual interests.[14] Walmart was the largest grocery retailer in the United States in 2019, and 65 percent of Walmart’s $510.329 billion in sales came from US stores.[15][16]
Walmart was listed on the New York Stock Exchange in 1972. By 1988 it was the most profitable retailer in the US[17] and was the top-selling by October 1989.[18] The company was initially limited geographically to the South and lower Midwest, but by the early 1990s had operations coast to coast. Sam’s Club opened in New Jersey in November 1989 and the first California branch opened in Lancaster in July 1990. A Walmart in York, Pennsylvania opened in October 1990, the first major store in the Northeast.
Walmart’s investments outside the US have had mixed results. Its operations and subsidiaries in Canada,[20] the United Kingdom,[21] Central America, South America, and China are thriving, but its ventures in Germany, Japan, and South Korea have failed.[22][23][24]
history [edit]
1945–1969: Early History[edit]
Sam Walton’s original Walton’s Five and Dime Store in Bentonville, Arkansas now serves as The Walmart Museum
In 1945, businessman and former J.C. Penney employee Sam Walton bought a branch of the Ben Franklin stores from the Butler Brothers.[25] His primary focus was selling products at low prices in order to achieve larger sales volumes at a lower profit margin, which he presented as a crusade for the consumer. It experienced setbacks because the rental rate and store purchase were abnormally high, but it was able to find lower cost suppliers than those used by other stores and consequently was able to undercut its competitors on pricing.[26] Sales increased 45 percent in his first year of ownership to $105,000 in sales, which grew to $140,000 the next year and $175,000 the following year. Within its fifth year, the store had sales of $250,000. The lease then expired for the location and Walton was unable to reach an agreement to renew, so he opened a new store at 105 N. Main Street in Bentonville and called it “Walton’s Five and Dime”. That store is now the Walmart Museum.[28]
Original logo, 1962-1964
On July 2, 1962, Walton opened the first Wal-Mart Discount City store at 719 W. Walnut Street in Rogers, Arkansas. Its design was inspired by Ann & Hope, which Walton visited in 1961, as did Kmart founder Harry B. Cunningham. The name comes from FedMart, a discount department store chain founded by Sol Price in 1954, which also inspired Walton. Walton explained that he liked the idea of naming his discount chain “Wal-Mart” because he “really liked Sol’s FedMart name.” The building is now occupied by a hardware store and antiques mall, while the company’s “Store #1” has since expanded into a supercenter several blocks west at 2110 W. Walnut Street. Within its first five years, the company expanded to 18 stores in Arkansas and had sales of $9 million.[31] In 1968 it opened its first stores outside of Arkansas in Sikeston, Missouri and Claremore, Oklahoma.[32]
1969-1990: Incorporation and growth as a regional power
Logo used 1964–1981
The company was incorporated as Wal-Mart, Inc. on October 31, 1969 and renamed Wal-Mart Stores, Inc. in 1970. That same year, the company opened a home office and initial distribution center in Bentonville, Arkansas. It had 38 stores with 1,500 employees and sales of $44.2 million. It began trading as a public company on October 1, 1970 and was soon listed on the New York Stock Exchange. The first stock split took place in May 1971 at a price of $47 per share. At this point, Walmart operated in five states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma; it came to Tennessee in 1973 and to Kentucky and Mississippi in 1974. When the company moved to Texas in 1975, there were 125 stores with 7,500 employees and total sales of $340.3 million.
Logo used 1981–1992
During the 1980s, Walmart continued to grow rapidly, and by the company’s 25th anniversary in 1987, there were 1,198 stores with sales of $15.9 billion and 200,000 employees.
This year also marked the completion of the company’s satellite network, a $24 million investment, which connects all of its two-way voice and data and one-way video businesses to the Bentonville office. At the time, the company was the largest private satellite network, allowing corporate headquarters to track inventory and sales and communicate with stores instantly.[33] By 1984, Sam Walton had begun sourcing between 6% and 40% of his company’s products from China.[34] In 1988, Walton resigned as CEO and was replaced by David Glass.[35] Walton remained chairman of the board. That year, the first Walmart Supercenter opened in Washington, MO.[36]
With the contribution of its superstores, the company surpassed Toys “R” Us in toy sales in 1998.
1990–2005: Rise of retail to multinational status[ edit ]
The logo was used from 1992 to 2008 and is still used in some locations and on many tractor units
Despite being the third-largest retailer in the United States, Walmart was more profitable than competitors Kmart and Sears in the late 1980s. By 1990, it became the largest US retailer by sales.[39]
Before the summer of 1990, Walmart had no presence on the West Coast or the Northeast (except for a single Sam’s Club in New Jersey, which opened in November 1989), but in July and October of that year it opened its first stores in California and Pennsylvania, respectively . By the mid-1990s it was the largest retailer in the US, expanding into Mexico in 1991 and Canada in 1994.[40] Walmart stores opened in the rest of the US, with Vermont being the last state to receive a store in 1995.[41]
The company also opened stores outside of North America, entering South America in 1995 with stores in Argentina and Brazil. and Europe in July 1999, buying Asda in the UK for US$10 billion.
In 1997, Walmart was included in the Dow Jones Industrial Average.[43]
In 1998, Walmart introduced the Neighborhood Market concept with three stores in Arkansas.[44] It is estimated that by 2005 the company controlled about 20 percent of the grocery and consumables retail business.[45]
In 2000, H. Lee Scott became President and CEO of Walmart as the company’s sales grew to $165 billion.[46] In 2002, it was listed for the first time as America’s largest company on the Fortune 500, with revenues of $219.8 billion and profits of $6.7 billion. It has stayed there every year except 2006, 2009 and 2012.[47][48][49][50][51][52][53][54][55][56][57][excessive citations ]
In 2005, Walmart reported sales of $312.4 billion, more than 6,200 locations around the world — including 3,800 stores in the United States and 2,800 elsewhere — and employed more than 1.6 million people. Its US presence grew so rapidly that only small parts of the country remained more than 60 miles (97 kilometers) from the nearest store.[58]
As Walmart quickly expanded to become the world’s largest company, many critics worried about the impact it would have on local communities, especially small towns with lots of corner shops. Several studies have been conducted into the economic impact of Walmart on small towns and local businesses, jobs, and taxpayers. In one, Kenneth Stone, an economics professor at Iowa State University, found that some small towns can lose nearly half their retail sales within ten years of opening a Walmart store.[59] However, in another study, he compared the changes to those small-town stores have faced in the past — including the development of the railroads, the advent of the Sears Roebuck catalog, and the arrival of shopping malls — and concluded that storekeepers Adapting to changes in the retail market can thrive after the arrival of Walmart.[59] A later study in collaboration with Mississippi State University showed that there are “both positive and negative impacts on existing businesses in the area where the new supercenter is located.”[60]
After Hurricane Katrina in September 2005, Walmart used its logistics network to organize a rapid response to the disaster, donating $20 million, 1,500 truckloads of goods, food for 100,000 meals, and the promise of a job for each of its displaced workers.[ 61] An independent study by Steven Horwitz of St. Lawrence University found that Walmart, The Home Depot and Lowe’s used their local knowledge of supply chains, infrastructure, decision makers and other resources to provide emergency supplies and reopen stores well before the federal emergency, according to the management agency (FEMA) began their response.[62] While the company was generally praised for its quick response amid criticism of FEMA, several critics were quick to point out that the company’s labor relations issues still existed.[63]
2005–2010: initiatives [ edit ]
Environmental initiatives[edit]
In November 2005, Walmart announced several environmental measures to increase energy efficiency and improve its previously lacking overall environmental footprint.[64] The company’s key goals included spending $500 million annually to increase fuel efficiency in Walmart’s truck fleet by 25 percent over three years and doubling it in ten years; Reduction of greenhouse gas emissions by 20 percent in seven years; Reduction of energy consumption in stores by 30 percent; and reduce solid waste from US stores and Sam’s Clubs by 25 percent in three years. CEO Lee Scott said Walmart’s goal is to be a “good steward of the environment” and ultimately use only renewable energy sources and produce zero waste.[65] The company also designed three new experimental stores with wind turbines, photovoltaic solar panels, biofuel-enabled boilers, water-cooled refrigerators, and xeriscape gardens.[66] During this time, Walmart also became the world’s largest seller of organic milk and the largest buyer of organic cotton, while reducing packaging and energy costs.[64] In 2007, the company worked with outside consultants to determine its overall environmental impact and identify areas for improvement. Walmart created its own Texas electric company, Texas Retail Energy, to power its stores with cheap electricity purchased at wholesale prices. Through this new venture, the company expected to save $15 million annually and also provide the foundation and infrastructure to sell electricity to Texas consumers in the future.[67]
Branding and store design changes [ edit ]
In 2006, Walmart announced it would transform its US stores to appeal to a greater diversity of demographics, including more affluent shoppers. As part of the initiative, the company opened a new store in Plano, Texas, which included high-end electronics, jewelry, expensive wines, and a sushi bar.[68]
On September 12, 2007, Walmart introduced new advertising with the slogan “Save Money. Live Better”, replacing “Always Low Prices, Always” which it had used since 1988. Global Insight, which conducted the research supporting the ads, found that Walmart’s price cut in 2006 resulted in savings for consumers of $287 billion, which equated to $957 per person, or $2,500 per household (a 7.3 percent increase over the 2004 savings estimate of $2,329).[69]
On June 30, 2008, Walmart removed the hyphen from its logo and replaced the star with a Spark symbol resembling a sunburst, flower, or star. The new logo received mixed reviews from design critics, who questioned whether the new logo was as bold as that of the competition, such as Target’s bullseye, or as instantly recognizable as the previous company logo, which was in use for 18 years.[ 70] The new logo[71] debuted on the company’s website on July 1, 2008, and its US locations updated the business logos in the fall of 2008.[72] Walmart Canada began adopting the logo for its stores in early 2009.
Acquisitions and employee benefits[ edit ]
On March 20, 2009, Walmart announced that it would pay a total of $933.6 million in bonuses to each full-time and part-time employee.[74] There were also $788.8 million in profit sharing, 401(k) pension contributions, hundreds of millions of dollars in merchandise discounts, and employee stock purchase plan contributions.[75] While the economy at large was in a prolonged recession, Walmart reported solid financials for the fiscal year ended January 31, 2009, with net sales of $401.2 billion, up 7.2 percent from the prior year. Income from continuing operations increased 3 percent to $13.3 billion and earnings per share increased 6 percent to $3.35.
On February 22, 2010, the company confirmed that it was acquiring video streaming company Vudu, Inc. for an estimated $100 million.[76]
In May 2021, Walmart acquired Israeli startup Zeekit for $200 million. Zeekit uses artificial intelligence to enable customers to try on clothes via a dynamic virtual platform.[77]
A truck converted to run on biofuel
A Walmart pickup location in Canada
Walmart’s truck fleet covers millions of miles each year, and the company planned to double the fleet’s efficiency between 2005 and 2015.[78] The truck pictured is one of 15 at Walmart’s Buckeye, Arizona, a distribution center converted to run on biofuel made from reclaimed cooking oil made during food preparation at Walmart stores.[79]
In January 2011, Walmart announced a five-year program to improve the nutritional value of its store brands, gradually reducing the amount of salt and sugar and eliminating trans fats. Walmart also pledged to negotiate with suppliers on nutrition issues, reduce prices on whole foods and vegetables, and open stores in low-income areas known as “food deserts” where there are no supermarkets.[80] On April 23, 2011, the company announced that it was testing its new “Walmart To Go” home delivery system, which allows customers to order specific items featured on their website. The first test took place in San Jose, California, and the company has not yet said if the delivery system will be rolled out nationwide.[81]
On November 14, 2012, Walmart launched its first email subscription service called Goodies. Customers pay a $7 monthly subscription for five to eight food samples delivered each month so they can try new foods.[82] The service was discontinued at the end of 2013.[83]
In August 2013, the company announced that it was in talks to acquire a majority stake in Kenya-based supermarket chain Naivas.[84]
In June 2014, some Walmart workers in major US cities went on strike demanding higher wages.[85] In July 2014, American actress and comedian Tracy Morgan filed a lawsuit against Walmart, seeking punitive damages over a multiple-car pile-up allegedly caused by the driver of one of the company’s semi-trucks who had not slept for 24 hours. Morgan’s limousine was apparently hit by the trailer, injuring him and two passengers and killing a fourth, comedian James McNair.[86] Walmart has settled $10 million with the McNair family without admitting liability.[87] Morgan and Walmart reached a settlement for an undisclosed amount in 2015,[88] although Walmart later accused its insurers of “bad faith” for refusing to pay the settlement.[89]
In 2015, the company temporarily closed five stores for plumbing repairs.[90] However, workers and the United Food and Commercial Workers International Union (UFCW) have claimed that some stores have been closed in retaliation for strikes aimed at raising wages and improving working conditions.[91] The UFCW filed a complaint with the National Labor Relations Board. All five stores have since reopened.[92]
In 2015, Walmart was the largest commercial US producer of solar power with 142 MW of capacity and had 17 energy storage projects. This solar energy was mainly used on roofs, while there is another 20,000 m2 for solar canopies over parking lots.[95] [96][97] The store was built on top of a two-story parking garage, the only one of its kind in the United States.[98] Walmart Supercenter in Grundy, Virginia (Store #3303). This store was built as part of a $200 million revitalization project. The store was built on top of a two-story parking garage, the only one of its kind in the United States.
On January 15, 2016, Walmart announced that it would close 269 stores in 2016, affecting 16,000 workers.[99] Of those stores scheduled for closure, 154 were located in the United States (150 Walmart U.S. stores, 115 Walmart International stores, and 4 Sam’s Clubs). 95 percent of these US stores were located an average of 10 miles from another Walmart store. The 269 stores represented less than 1 percent of the company’s global space and sales. The 102 Neighborhood Markets locations formerly or originally planned as Walmart Express, which had been in a pilot program since 2011 and were converted to Neighborhood Markets in 2014, were included in the closures. Walmart planned to focus on “strengthening supercenters, optimizing neighborhood markets, growing e-commerce business and expanding customer pickup services.” In fiscal 2017, the company plans to open 50 to 60 supercenters, 85 to 95 convenience stores, 7 to 10 Sam’s Clubs, and 200 to 240 international locations.[100] At the end of fiscal 2017, Walmart opened 38 supercenters and moved, expanded or converted 21 discount stores into supercenters for a total of 59 supercenters and opened 69 neighborhood markets, 8 Sam’s Clubs and 173 international locations and moved, expanded or converted 4 locations for a total of 177 international locations. On August 8, 2016, Walmart announced a deal to acquire e-commerce site Jet.com for $3.3 billion. Marc Lore, co-founder and CEO of Jet.com, ran Jet.com in addition to Walmart’s existing US e-commerce business. The acquisition was structured as a $3 billion cash payment, and an additional $300 million in Walmart stock was transferred over time as part of an incentive bonus plan for Jet.com executives. On October 19, 2016, Walmart announced that it would work with IBM and Tsinghua University to track the pork supply chain in China using blockchain.[104]
On February 15, 2017, Walmart announced it had acquired Moosejaw, a leading online retailer of active outdoor products, for approximately $51 million. The acquisition was completed on February 13, 2017.[105] On June 16, 2017, Walmart agreed to acquire menswear company Bonobos for $310 million to expand its fashion inventory.[106] On September 29, 2017, Walmart acquired Parcel, a technology-based same-day and last-mile delivery company in Brooklyn.[107] In 2018, Walmart began crowdsourcing delivery services for customers using drivers’ personal vehicles under the Spark brand.
On December 6, 2017, Walmart announced that it would be changing its corporate name from Wal-Mart Stores, Inc. to Walmart Inc., effective February 1, 2018.
On January 11, 2018, Walmart announced that it would be closing 63 Sam’s Club locations in cities including Memphis, Houston, Seattle, and others. Some of the stores had already closed without notifying employees; Some employees found out through a company-wide email delivered on January 11th. All 63 stores were gone from the Sam’s Club website by the morning of January 11. Walmart said 10 of the stores will become e-commerce distribution centers and employees can reapply to work at those locations. Business Insider magazine has calculated that over 11,000 workers will be affected.[111][112] On the same day, Walmart announced that as a result of the new tax law, it would increase Walmart’s starting wages, distribute bonuses, expand its vacation policy, and contribute to employee adoption costs. Walmart CEO Doug McMillon said, “We are still in the early stages of evaluating the opportunities that tax reform creates for us to invest in our customers and employees and continue to grow our business, all for the benefit of our shareholders should come.”[113]
In March 2018, Walmart announced that it would produce its own brand of meal kits in all of its stores, priced under Blue Apron and designed for two people.[114]
It has been reported that Walmart is now trying to get into the subscription video space in hopes of competing with Netflix and Amazon. They enlisted the help of former Epix CEO Mark Greenberg to help develop a low-cost subscription video streaming service.[115]
In September 2018, Walmart partnered with comedian and talk show host Ellen DeGeneres to launch a new women’s apparel and accessories brand called EV1.[116]
On February 26, 2019, Walmart announced that it had acquired Tel Aviv-based product ratings startup Aspectiva for an undisclosed sum.[117]
In May 2019, Walmart announced the introduction of free one-day shipping on more than 220,000 items with a minimum order of $35.[118] The initiative started first in Las Vegas and the Phoenix area.[119]
In September 2019, Walmart announced that it would stop selling all e-cigarettes due to “regulatory complexity and uncertainty” about the products. In early 2019, Walmart stopped selling fruit-flavored e-cigarettes and raised the minimum age for purchasing tobacco-containing products to 21.[120] That same month, Walmart opened its first health center, a “Medical Mall,” where customers can purchase essential care services such as eye exams, dental exams and root canals, lab work, X-rays and EKGs, counseling, and fitness and nutrition classes. For example, prices without insurance have been quoted as $30 for an annual assessment and $45 for a counseling session.[121] They continued their health initiative and opened a 2,600 square foot (240 m2) prototype health and wellness clinic in Springdale, Arkansas just to expand services.[122]
As of October 2019, Walmart has stopped selling all live fish and aquatic plants.[123]
2020s: Continued growth and development[ edit ]
Signs at a Walmart indicate changes due to the COVID-19 pandemic
This decade began, as with many other businesses, very unorthodox and unusual, due to much of the coronavirus (COVID-19) pandemic, including store closures, limited store occupancy and employment, along with social distancing protocols.
In March 2020, Walmart changed some of its employee benefits due to the pandemic. Employees can now choose to stay at home and take unpaid leave if they feel unable to work or uncomfortable coming to work. Additionally, Walmart employees who contract the virus will receive “up to two weeks’ salary.” After two weeks, hourly workers who are unable to return to work are entitled to up to 26 weeks’ salary.[124] During this pandemic, those who work temporarily will receive $150, but those who work full-time will receive a bonus of $300, giving all employees more than $390 million starting June 5.[125 ] Previously during the pandemic on April 2nd the bonus money totaled more than $365. In July 2020, Walmart announced that it would require all customers to wear masks at all stores nationwide, including Sam’s Club. For the third quarter of 2020 ended Oct. 31, Walmart reported revenue of $134.7 billion, a 5.2 percent increase over the prior year.[127]
In December 2020, Walmart introduced a new service, Carrier Pickup, that allows customers to schedule a return for a product purchased online, in-store, or from a third-party seller. These services can be initiated in the Walmart app or on the website.[128]
In January 2021, Walmart announced that it was forming a fintech startup with venture partner Ribbit Capital to provide financial products for consumers and employees.[129]
In February 2021, Walmart acquired technology from Thunder Industries that uses automation to create digital ads to expand its online marketing capabilities.[130]
In August 2021, Walmart announced that it would white-label its Spark crowdsourced delivery service to other businesses, competing with Postmates and delivery companies for online grocery orders.[108]
In December 2021, Walmart announced it would attend the Stephens Investment Conference and the Morgan Stanley Virtual Global Consumer & Retail Conference on Wednesday.[131] In June 2022, Walmart announced it would acquire Memomi, an AR optical tech company. [132]
Divisions[ edit ]
Legend: Current Market Locations Former Market Locations No Current Market Locations Map of Countries with Walmart StoresKey:
Map of US Walmart locations as of December 2020
As of 2016, Walmart’s operations are organized into four divisions: Walmart U.S., Walmart International, Sam’s Club, and Global eCommerce.[133] Das Unternehmen bietet verschiedene Einzelhandelsformate in diesen Geschäftsbereichen an, darunter Supercenter, Supermärkte, Verbrauchermärkte, Lagerhäuser, Cash-and-Carry-Läden, Heimwerker, Spezialelektronik, Restaurants, Bekleidungsgeschäfte, Drogerien, Convenience-Stores und digitaler Einzelhandel.[134]
Walmart USA [ bearbeiten ]
Walmart U.S. ist der größte Geschäftsbereich des Unternehmens und macht im Geschäftsjahr 2019 331,666 Milliarden US-Dollar oder 65 Prozent des Gesamtumsatzes aus.[15][16] Es besteht aus drei Einzelhandelsformaten, die in den Vereinigten Staaten alltäglich geworden sind: Supercenter, Discounter, Nachbarschaftsmärkte und andere kleine Formate. Die Discounter verkaufen eine Vielzahl von Produkten, die hauptsächlich keine Lebensmittel sind, obwohl sich der Schwerpunkt jetzt auf Supercenter verlagert hat, die mehr Lebensmittel enthalten. Zum 30. April 2022 gibt es insgesamt 4.735 Walmart-Geschäfte in den USA.[3] In den Vereinigten Staaten wohnen 90 Prozent der Bevölkerung im Umkreis von 10 Meilen um ein Walmart-Geschäft.[135] Die Gesamtzahl der Walmart-Geschäfte in den USA und Sam’s Clubs zusammen beträgt 5.335.[3]
Der Präsident und CEO von Walmart U.S. ist John Furner.[136]
Walmart Supercenter [ bearbeiten ]
Walmart Supercenter, einfach als „Walmart“ bezeichnet, sind Verbrauchermärkte mit Größen zwischen 69.000 und 260.000 Quadratfuß (6.400 bis 24.200 Quadratmeter), aber im Durchschnitt etwa 178.000 Quadratfuß (16.500 Quadratmeter).[12] Diese führen allgemeine Waren und einen Supermarkt mit umfassendem Service, darunter Fleisch und Geflügel, Backwaren, Feinkost, Tiefkühlkost, Milchprodukte, Gartenprodukte und frische Meeresfrüchte. Viele Walmart Supercenter haben auch ein Gartencenter, eine Tierhandlung, eine Apotheke, Tire & Lube Express, ein optisches Zentrum, ein einstündiges Fotolabor, ein Porträtstudio und zahlreiche Alkovengeschäfte, wie Handyläden, Friseur- und Nagelstudios, Videoverleih Geschäfte, lokale Bankfilialen (z. B. Filialen der Woodforest National Bank an neueren Standorten) und Fast-Food-Läden.
Viele Walmart Supercenter bieten derzeit McDonald’s- oder Subway-Restaurants an. An einigen kanadischen Standorten wurden Tim Hortons eröffnet. Kürzlich hat Walmart in mehreren Supercentern, wie den Standorten Tallahassee, Florida und Palm Desert, Kalifornien, Burger King zu ihren Standorten hinzugefügt, und den Standort in Glen Burnie, Maryland, aufgrund seiner Vergangenheit als Hypermarkt namens Leedmark, der ab Mai in Betrieb war 1991 bis Januar 1994, verfügt über ein Tante Anne’s und ein italienisches Restaurant.
Einige Standorte haben auch Tankstellen, die Benzin verkaufen, das von Murphy USA (das 2013 aus Murphy Oil ausgegliedert wurde), Sunoco, Inc. („Optima“), der Tesoro Corporation („Mirastar“), USA Gasoline und sogar jetzt Walmart vertrieben wird -gebrandete Tankstellen.[137]
Das erste Supercenter wurde 1988 in Washington, Missouri, eröffnet. Ein ähnliches Konzept, Hypermart USA, war ein Jahr zuvor in Garland, Texas, eröffnet worden. Alle Hypermart USA-Läden wurden später geschlossen oder in Supercenter umgewandelt.
Am 30. April 2022 gab es 3.571 Walmart Supercenter in 49 der 50 US-Bundesstaaten, dem District of Columbia und Puerto Rico.[3] Hawaii ist der einzige Staat, der keinen Supercenter-Standort hat. Das größte Supercenter der Welt mit einer Fläche von 24.000 Quadratmetern auf zwei Etagen befindet sich in Crossgates Commons in Albany, New York.[138]
Ein typisches Supercenter verkauft ungefähr 120.000 Artikel, verglichen mit den 35 Millionen verkauften Produkten im Online-Shop von Walmart.[139]
Der Name „Supercenter“ wurde inzwischen abgeschafft, wobei diese Geschäfte jetzt einfach als „Walmart“ bezeichnet werden, seit das Unternehmen 2008 das neue Walmart-Logo eingeführt hat. Das Branding wird jedoch immer noch in den kanadischen Geschäften von Walmart verwendet (buchstabiert als „Supercentre ” in kanadischem Englisch).[140]
Walmart Discounter [ bearbeiten ]
Walmart Discount Stores, auch einfach als “Walmart” bezeichnet, sind Discount-Kaufhäuser mit Größen zwischen 2.800 und 20.500 Quadratmetern (30.000 bis 221.000 Quadratfuß), wobei das durchschnittliche Geschäft 9.800 Quadratmeter (105.000 Quadratfuß) umfasst. Sie tragen allgemeine Waren und begrenzte Lebensmittel. Einige neuere und umgebaute Discounter haben eine erweiterte Lebensmittelabteilung, ähnlich der PFresh-Abteilung von Target. Viele dieser Geschäfte verfügen auch über ein Gartencenter, eine Apotheke, Tire & Lube Express, ein optisches Zentrum, ein einstündiges Fotolabor, ein Porträtstudio, eine Bankfiliale, ein Handygeschäft und ein Fast-Food-Geschäft. Einige haben auch Tankstellen.[137] Discount Stores were Walmart’s original concept, though they have since been surpassed by Supercenters.[citation needed]
In 1990, Walmart opened its first Bud’s Discount City location in Bentonville. Bud’s operated as a closeout store, much like Big Lots. Many locations were opened to fulfill leases in shopping centers as Walmart stores left and moved into newly built Supercenters. All of the Bud’s Discount City stores had closed or converted into Walmart Discount Stores by 1997.[141]
At its peak in 1996, there were 1,995 Walmart Discount Stores,[142] but as of April 30, 2022, that number was dropped to 368.[3]
Walmart Neighborhood Market [ edit ]
Walmart Neighborhood Market, sometimes branded as “Neighborhood Market by Walmart” or informally known as “Neighborhood Walmart”, is Walmart’s chain of supermarkets ranging from 28,000 to 65,000 square feet (2,600 to 6,000 square meters) and averaging about 42,000 square feet (3,900 square meters), about a fifth of the size of a Walmart Supercenter.[12][143] The first Walmart Neighborhood Market opened ten years after the first Supercenter opened, yet Walmart renewed its focus on the smaller grocery store format in the 2010s.[144]
The stores focus on three of Walmart’s major sales categories: groceries, which account for about 55 percent of the company’s revenue,[145][146] pharmacy, and, at some stores, fuel.[147] For groceries and consumables, the stores sell fresh produce, deli and bakery items, prepared foods, meat, dairy, organic, general grocery and frozen foods, in addition to cleaning products and pet supplies.[143][148] Some stores offer wine and beer sales[143] and drive-through pharmacies. Some stores, such as one at Midtown Center in Bentonville, Arkansas, offer made-to-order pizza with a seating area for eating.[149] Customers can also use Walmart’s site-to-store operation and pick up online orders at Walmart Neighborhood Market stores just like the Supercenters and Discount Stores[150]
Products at Walmart Neighborhood Market stores carry the same prices as those at Walmart’s larger supercenters. A Moody’s analyst said the wider company’s pricing structure gives the chain of grocery stores a “competitive advantage” over competitors Whole Foods, Kroger and Trader Joe’s.[147]
Neighborhood Market stores expanded slowly at first as a way to fill gaps between Walmart Supercenters and Discount Stores in existing markets. In its first 12 years, the company opened about 180 Walmart Neighborhood Markets. By 2010, Walmart said it was ready to accelerate its expansion plans for the grocery stores.[151] As of April 30, 2022, there were 682 Walmart Neighborhood Markets,[3] each employing between 90 and 95 full-time and part-time workers.[152] There are also currently 12 Amigo supermarkets in Puerto Rico. The total number of Neighborhood Markets and Amigo combined is 694, while the total number of the former two and other small formats combined is 796.[citation needed]
Neighborhood Market, depending on the area, has some competition with Hy-Vee Fast & Fresh, which launched in 2019 that is similar to Neighborhood Market.
Former stores and concepts [ edit ]
A Walmart Neighborhood Market originally planned to be a Walmart Express in Alma, Georgia in September 2015 (Store #4229). This location closed in 2016 as part of a plan to close 269 stores globally.
Walmart opened Supermercado de Walmart locations to appeal to Hispanic communities in the United States.[153] The first one, a 39,000-square-foot (3,600-square-meter) store in the Spring Branch area of Houston, opened on April 29, 2009.[154] The store was a conversion of an existing Walmart Neighborhood Market.[155] In 2009, another Supermercado de Walmart opened in Phoenix, Arizona.[156] Both locations closed in 2014.[157] In 2009, Walmart opened “Mas Club”, a warehouse retail operation patterned after Sam’s Club. Its lone store also closed in 2014.[154]
Walmart Express was a chain of smaller discount stores with a range of services from groceries to check cashing and gasoline service. The concept was focused on small towns deemed unable to support a larger store and large cities where space was at a premium. Walmart planned to build 15 to 20 Walmart Express stores, focusing on Arkansas, North Carolina, and Chicago, by the end of its fiscal year in January 2012. As of September 2014, Walmart re-branded all 22[158] of its Express format stores to Neighborhood Markets in an effort to streamline its retail offer. It continued to open new Express stores under the Neighborhood Market name. As of April 30, 2022, there were 102 small-format stores in the United States. These include 93 other small formats, 8 convenience stores and 1 pickup location.[3] On January 15, 2016, Walmart announced that it would be closing 269 stores globally, including the 102 Neighborhood Markets that were formerly or originally planned to be Express stores.[159]
Initiatives [ edit ]
In September 2006, Walmart announced a pilot program to sell generic drugs at $4 per prescription. The program was launched at stores in the Tampa, Florida, area, and by January 2007 had been expanded to all stores in Florida. While the average price of generics is $29 per prescription, compared to $102 for name-brand drugs, Walmart maintains that it is not selling at a loss, or providing them as an act of charity—instead, they are using the same mechanisms of mass distribution that it uses to bring lower prices to other products.[160] Many of Walmart’s low cost generics are imported from India, where they are made by drug makers that include Ranbaxy and Cipla.[161]
On February 6, 2007, the company launched a “beta” version of a movie download service, which sold about 3,000 films and television episodes from all major studios and television networks.[162] The service was discontinued on December 21, 2007, due to low sales.[163]
In 2008, Walmart started a pilot program in the small grocery store concept called Marketside in the metropolitan Phoenix, Arizona, area. The four stores closed in 2011.[164]
In 2015, Walmart began testing a free grocery pickup service, allowing customers to select products online and choose their pickup time. At the store, a Walmart employee loads the groceries into the customer’s car. As of December 17, 2017, the service is available in 39 U.S. states.[165]
In May 2016, Walmart announced a change to ShippingPass, its three-day shipping service, and that it will move from a three-day delivery to two-day delivery to remain competitive with Amazon.[166] Walmart priced it at 49 dollars per year, compared to Amazon Prime’s 99-dollar-per-year price.[167][168]
In June 2016, Walmart and Sam’s Club announced that they would begin testing a last-mile grocery delivery that used services including Uber, Lyft, and Deliv, to bring customers’ orders to their homes. Walmart customers would be able to shop using the company’s online grocery service at grocery.walmart.com, then request delivery at checkout for a small fee. The first tests were planned to go live in Denver and Phoenix.[169] Walmart announced on March 14, 2018, that it would expand online delivery to 100 metropolitan regions in the United States, the equivalent of 40 percent of households, by the end of the year of 2018.[170]
Walmart’s Winemakers Selection private label wine was introduced in June 2018 in about 1,100 stores. The wine, from domestic and international sources, was described by Washington Post food and wine columnist Dave McIntyre as notably good for the inexpensive ($11 to $16 per bottle) price level.[171]
In October 2019, Walmart announced that customers in 2,000 locations in 29 states can use the grocery pickup service for their adult beverage purchases. Walmart will also deliver adult beverages from nearly 200 stores across California and Florida.[172]
In February 2020, Walmart announced a new membership program called, “Walmart +”. The news came shortly after Walmart announced the discontinuation of its personal shopping service, Jetblack.[173][174]
Numbers of stores by state [ edit ]
Locations as of April 30, 2022
Walmart International [ edit ]
As of April 30, 2022, Walmart’s international operations comprised 5,250 stores[3] and 800,000 workers in 23 countries outside the United States.[227] There are wholly owned operations in Argentina, Brazil, Canada, and the UK. With 2.2 million employees worldwide, the company is the largest private employer in the U.S. and Mexico, and one of the largest in Canada.[7] In fiscal 2019 Walmart’s international division sales were US$120.824 billion, or 23.7 percent of total sales.[15][16] International retail units range from 1,400 to 186,000 square feet (130 to 17,280 square meters), while wholesale units range from 24,000 to 158,000 square feet (2,200 to 14,700 square meters).[12] Judith McKenna is the president and CEO.[228]
Central America[ edit ]
Walmart also owns 51 percent of the Central American Retail Holding Company (CARHCO), which, as of April 30, 2022, consists of 866 stores, including 263 stores in Guatemala (under the Paiz [27 locations], Walmart Supercenter [10 locations], Despensa Familiar [181 locations], and Maxi Dispensa [45 locations] banners),[3] 102 stores in El Salvador (under the Despensa Familiar [63 locations], La Despensa de Don Juan [17 locations], Walmart Supercenter [6 locations], and Maxi Despensa [16 locations] banners),[3] 111 stores in Honduras (including the Paiz [8 locations], Walmart Supercenter [4 locations], Dispensa Familiar [71 locations], and Maxi Despensa [28 locations] banners),[3] 102 stores in Nicaragua (including the Pali [71 locations], La Unión [9 locations], Maxi Pali [20 locations], and Walmart Supercenter [2 locations] banners),[3] and 288 stores in Costa Rica (including the Maxi Pali [49 locations], Mas X Menos [38 locations], Walmart Supercenter [14 locations], and Pali [187 locations] banners[3]).[229]
Chile [ edit ]
In January 2009, the company acquired a controlling interest in the largest grocer in Chile, Distribución y Servicio D&S SA.[230][231] In 2010, the company was renamed Walmart Chile.[232] As of April 30, 2022, Walmart Chile operates 381 stores under the banners Lider Hiper (96 locations), Lider Express (153 locations), Superbodega Acuenta (121 locations), and Central Mayorista (11 locations).[3]
Mexico [ edit ]
Walmart in Mexico
As of April 30, 2022, Walmart’s Mexico division, the largest outside the U.S., consisted of 2,764 stores.[3] Walmart in Mexico operates Walmart Supercenter (295 locations), Sam’s Club (166 locations), Bodega Aurrera (564 locations), Mi Bodega Aurrera (431 locations), Bodega Aurrera Express (1,209 locations), Walmart Express (97 locations) and Superama (2 locations).[3]
Canada[ edit ]
Walmart has operated in Canada since it acquired 122 stores comprising the Woolco division of Woolworth Canada, Inc on January 14, 1994.[233] As of April 30, 2022, it operates 408 locations (including 343 supercentres and 65 discount stores)[3] and, as of June 2015, it employs 89,358 people, with a local home office in Mississauga, Ontario.[234] Walmart Canada’s first three Supercentres (spelled in Canadian English) opened in November 2006 in Ancaster, London, and Stouffville, Ontario.[235] The 100th Canadian Supercentre opened in July 2010, in Victoria, British Columbia.
In 2010, approximately one year after its incorporation of Schedule 2 (foreign-owned, deposit-taking) of Canada’s Bank Act,[236] Walmart Canada Bank was introduced with the launch of the Walmart (Canada) Rewards MasterCard.[237] Less than ten years later, however, on May 17, 2018, Wal-Mart Canada announced it had reached a definitive agreement to sell Wal-Mart Canada Bank to First National co-founder Stephen Smith and private equity firm Centerbridge Partners, L.P., on undisclosed financial terms, though it added that it would still be issuer of the Walmart (Canada) Rewards MasterCard.[238]
On April 1, 2019, Centerbridge Partners, L.P. and Stephen Smith jointly announced the closing of the previously announced acquisition of Wal-Mart Canada Bank and that it was to be renamed Duo Bank of Canada, to be styled simply as Duo Bank.[239][240] Though exact ownership percentages were never revealed in either company announcement, it has also since been revealed that Duo Bank was reclassified as a Schedule 1 (domestic, deposit-taking)[241][242] federally chartered bank of the Bank Act in Canada from the Schedule 2 (foreign-owned or -controlled, deposit-taking)[242] that it had been, which indicates that Stephen Smith, as a noted Canadian businessman, is in a controlling position.
Africa [edit]
On September 28, 2010, Walmart announced it would buy Massmart Holdings Ltd. of Johannesburg, South Africa in a deal worth over US$4 billion giving the company its first footprint in Africa.[243] As of April 30, 2022, it has 412 stores, including 362 stores in South Africa (under the banners Game Foodco [78 locations], CBW [41 locations], Game [39 locations], Builders Express [50 locations], Builders Warehouse [34 locations], Cambridge [42 locations], Rhino [15 locations], Makro [23 locations], Builders Trade Depot [9 locations], Jumbo [13 locations], and Builders Superstore [18 locations]),[3] 11 stores in Botswana (under the banners CBW [7 locations], Game Foodco [2 locations], and Builders Warehouse [2 locations]),[3] 4 stores in Ghana (under the Game Foodco banner),[3] 4 stores in Kenya (under the banners Game Foodco [3 locations] and Builders Warehouse [1 location]),[3] 3 stores in Lesotho (under the banners CBW [2 locations] and Game Foodco [1 location]), 2 stores in Malawi (under the Game banner),[3] 6 stores in Mozambique (under the banners Builders Warehouse [2 locations], Game Foodco [2 locations], CBW [1 location], and Builders Express [1 location]),[3] 5 stores in Namibia (under the banners Game Foodco [4 locations] and Game [1 location]),[3] 5 stores in Nigeria (under the banners Game [3 locations] and Game Foodco [2 location]),[3] 1 store in Swaziland (under the CBW banner),[3] 1 store in Tanzania (under the Game Foodco banner),[3] 1 store in Uganda (under the Game banner),[3] and 7 stores in Zambia (under the banners CBW [1 location], Game Foodco [3 locations], Builders Warehouse [2 locations], and Builders Express [1 location]).[3]
China [ edit ]
A Walmart in Hangzhou , China in February 2017
Walmart has joint ventures in China and several majority-owned subsidiaries. As of April 30, 2022, Walmart China (沃尔玛 Wò’ērmǎ)[244] operates 390 stores under the Walmart Supercenter (353 locations) and Sam’s Club (37 locations) banners.[3]
In February 2012, Walmart announced that the company raised its stake to 51 percent in Chinese online supermarket Yihaodian to tap rising consumer wealth and help the company offer more products. Walmart took full ownership in July 2015.[245]
In December 2021, the Chinese Communist Party’s Central Commission for Discipline Inspection warned Walmart about not stocking products made from inputs from Xinjiang in response to the Uyghur Forced Labor Prevention Act.[246]
India[ edit ]
In November 2006, the company announced a joint venture with Bharti Enterprises to operate in India. As foreign corporations were not allowed to enter the retail sector directly, Walmart operated through franchises and handled the wholesale end of the business.[247] The partnership involved two joint ventures—Bharti manages the front end, involving opening of retail outlets while Walmart takes care of the back end, such as cold chains and logistics. Walmart operates stores in India under the name Best Price Modern Wholesale.[248] The first store opened in Amritsar on May 30, 2009. On September 14, 2012, the Government of India approved 51 percent FDI in multi-brand retails, subject to approval by individual states, effective September 20, 2012.[249][250] Scott Price, Walmart’s president and CEO for Asia, told The Wall Street Journal that the company would be able to start opening Walmart stores in India within two years.[251] Expansion into India faced some significant problems. In November 2012, Walmart admitted to spending US$25 million lobbying the Indian National Congress;[252] lobbying is conventionally considered bribery in India.[253] Walmart is conducting an internal investigation into potential violations of the Foreign Corrupt Practices Act.[254] Bharti Walmart suspended a number of employees, rumored to include its CFO and legal team, to ensure “a complete and thorough investigation”.[255] In October 2013, Bharti and Walmart separated to pursue business independently.[256]
On May 9, 2018, Walmart announced its intent to acquire a 77% majority stake in the Indian e-commerce company Flipkart for $16 billion, in a deal that was completed on August 18, 2018.[257][258][259] As of April 30, 2022, there are 29 Best Price Modern Wholesale locations.[3]
Setbacks [ edit ]
In the 1990s, Walmart tried with a large financial investment to get a foothold in both German and Indonesian retail markets.
Walmart entered Indonesia with the opening of stores in Lippo Supermall (now known as Supermal Karawaci) and Megamall Pluit (now known as Pluit Village) respectively, under a joint-venture agreement with local conglomerate Lippo Group. Both stores closed down due to the 1997 Asian financial crisis.[260][261][262]
In 1997, Walmart took over the supermarket chain Wertkauf with its 21 stores for DM 750 million[263] and the following year Walmart acquired 74 Interspar stores for DM 1.3 billion.[264][265] The German market at this point was an oligopoly with high competition among companies which used a similar low price strategy as Walmart. As a result, Walmart’s low price strategy yielded no competitive advantage. Walmart’s corporate culture was not viewed positively among employees and customers, particularly Walmart’s “statement of ethics”, which attempted to restrict relationships between employees, a possible violation of German labor law, and led to a public discussion in the media, resulting in a bad reputation among customers.[266][267] In July 2006, Walmart announced its withdrawal from Germany due to sustained losses. The stores were sold to the German company Metro during Walmart’s fiscal third quarter.[268][269] Walmart did not disclose its losses from its German investment, but they were estimated to be around €3 billion.[270]
In 2004, Walmart bought the 118 stores in the Bompreço supermarket chain in northeastern Brazil. In late 2005, it took control of the Brazilian operations of Sonae Distribution Group through its new subsidiary, WMS Supermercados do Brasil, thus acquiring control of the Nacional and Mercadorama supermarket chains, the leaders in the Rio Grande do Sul and Paraná states, respectively. None of these stores were rebranded. As of January 2014, Walmart operated 61 Bompreço supermarkets, 39 Hiper Bompreço stores. It also ran 57 Walmart Supercenters, 27 Sam’s Clubs, and 174 Todo Dia stores. With the acquisition of Bompreço and Sonae, by 2010, Walmart was the third-largest supermarket chain in Brazil, behind Carrefour and Pão de Açúcar.[271]
Walmart Brasil, the operating company, has its head office in Barueri, São Paulo State, and regional offices in Curitiba, Paraná; Porto Alegre, Rio Grande do Sul; Recife, Pernambuco; and Salvador, Bahia.[272] Walmart Brasil operates under the banners Todo Dia, Nacional, Bompreço, Walmart Supercenter, Maxxi Atacado, Hipermercado Big, Hiper Bompreço, Sam’s Club, Mercadorama, Walmart Posto (Gas Station), Supermercado Todo Dia, and Hiper Todo Dia. Recently, the company started the conversion process of all Hiper Bompreço and Big stores into Walmart Supercenters and Bompreço, Nacional and Mercadorama stores into the Walmart Supermercado brand.
Since August 2018, Walmart Inc. only holds a minority stake in Walmart Brasil, which was renamed Grupo Big on August 12, 2019,[273] with 20% of the company’s shares, and private equity firm Advent International holding 80% ownership of the company.[274] On March 24, 2021, it was announced that Carrefour would be acquiring Grupo Big.[275]
A Walmart Supercenter in Argentina in February 2019
Walmart Argentina was founded in 1995 and operates stores under the banners Walmart Supercenter, Changomas, Mi Changomas, and Punto Mayorista. On November 6, 2020, it was announced that Walmart has sold its Argentine operations to Grupo de Narváez.[276]
ASDA Supermarket in Fife, Scotland
Walmart’s UK subsidiary Asda (which retained its name after being acquired by Walmart) is based in Leeds and accounted for 42.7 percent of 2006 sales of Walmart’s international division. In contrast to the U.S. operations, Asda was originally and still remains primarily a grocery chain, but with a stronger focus on non-food items than most UK supermarket chains other than Tesco. In 2010 Asda acquired stores from Netto UK. In addition to small suburban Asda Supermarkets,[3] larger stores are branded Supercentres.[3] Other banners include Asda Superstores, Asda Living, and Asda Petrol Fueling Station.[3][277] In July 2015, Asda updated its logo featuring the Walmart Asterisks behind the first ‘A’ in the Logo. In May 2018, Walmart announced plans to sell Asda to rival Sainsbury’s for $10.1 billion. Under the terms of the deal, Walmart would have received a 42% stake in the combined company and about £3 billion in cash.[278] However, in April 2019, the United Kingdom’s Competition and Markets Authority blocked the proposed sale of Asda to Sainsburys.[279]
On October 2, 2020, it was announced that Walmart will sell a majority stake of Asda to a consortium of Zuber and Mohsin Issa (the owners of EG Group) and private equity firm TDR Capital for £6.8bn, pending approval from the Competition and Markets Authority.[280]
In Japan, Walmart owned 100 percent of Seiyu (西友 Seiyū) as of 2008.[268][281] It operates under the Seiyu (Hypermarket), Seiyu (Supermarket), Seiyu (General Merchandise), Livin, and Sunny banners.[3] On November 16, 2020, Walmart announced they would be selling 65% of their shares in the company to the private-equity firm KKR in a deal valuing 329 stores and 34,600 employees at $1.6 billion. Walmart is supposed to retain 15% and a seat on the board, while a joint-venture between KKR and Japanese company Rakuten Inc. will receive 20%.[282]
Corruption charges [ edit ]
An April 2012 investigation by The New York Times reported the allegations of a former executive of Walmart de Mexico that, in September 2005, the company had paid bribes via local fixers to officials throughout Mexico in exchange for construction permits, information, and other favors, which gave Walmart a substantial advantage over competitors.[283] Walmart investigators found credible evidence that Mexican and American laws had been broken. Concerns were also raised that Walmart executives in the United States had “hushed up” the allegations. A follow-up investigation by The New York Times, published December 17, 2012, revealed evidence that regulatory permission for siting, construction, and operation of nineteen stores had been obtained through bribery. There was evidence that a bribe of US$52,000 was paid to change a zoning map, which enabled the opening of a Walmart store a mile from a historical site in San Juan Teotihuacán in 2004.[284] After the initial article was released, Walmart released a statement denying the allegations and describing its anti-corruption policy. While an official Walmart report states that it had found no evidence of corruption, the article alleges that previous internal reports had indeed turned up such evidence before the story became public.[285] Forbes magazine contributor Adam Hartung also commented that the bribery scandal was a reflection of Walmart’s “serious management and strategy troubles”, stating, “[s]candals are now commonplace … [e]ach scandal points out that Walmart’s strategy is harder to navigate and is running into big problems”.[286]
In 2012, there was an incident with CJ’s Seafood, a crawfish processing firm in Louisiana that was partnered with Walmart, that eventually gained media attention for the mistreatment of its 40 H-2B visa workers from Mexico. These workers experienced harsh living conditions in tightly packed trailers outside of the work facility, physical threats, verbal abuse, and were forced to work day-long shifts. Many of the workers were afraid to take action about the abuse due to the fact that the manager threatened the lives of their family members in the U.S. and Mexico if the abuse were to be reported. Eight of the workers confronted management at CJ’s Seafood about the mistreatment; however, the management denied the abuse allegations and the workers went on strike. The workers then took their stories to Walmart due to their partnership with CJ’s. While Walmart was investigating the situation, the workers collected 150,000 signatures of supporters who agreed that Walmart should stand by the workers and take action. In June 2012, the visa workers held a protest and day-long hunger strike outside of the apartment building where a Walmart board member resided. Following this protest, Walmart announced its final decision to no longer work with CJ’s Seafood. Less than a month later, the Department of Labor fined CJ’s Seafood “approximately $460,000 in back-pay, safety violations, wage and hour violations, civil damages, and fines for abuses to the H-2B program. The company has since shut down.”[287]
As of December 2012, internal investigations were ongoing into possible violations of the Foreign Corrupt Practices Act.[288] Walmart has invested US$99 million on internal investigations, which expanded beyond Mexico to implicate operations in China, Brazil, and India.[289][290] The case has added fuel to the debate as to whether foreign investment will result in increased prosperity, or if it merely allows local retail trade and economic policy to be taken over by “foreign financial and corporate interests”.[291][292]
Sam’s Club [ edit ]
Sam’s Club is a chain of warehouse clubs that sell groceries and general merchandise, often in bulk. Locations generally range in size from 32,000–168,000 sq ft (3,000–15,600 m2), with an average club size of approximately 134,000 sq ft (12,400 m2).[12] The first Sam’s Club was opened by Walmart, Inc. in 1983 in Midwest City, Oklahoma[293] under the name “Sam’s Wholesale Club”. The chain was named after its founder Sam Walton. As of April 30, 2022, Sam’s Club operated 600 membership warehouse clubs and accounted for 11.3% of Walmart’s revenue at $57.839 billion in fiscal year 2019.[15][294] Kathryn McLay is the president and CEO.[228][295]
Global eCommerce [ edit ]
Based in San Bruno, California, Walmart’s Global eCommerce division provides online retailing for Walmart, Sam’s Club, Asda, and all other international brands. There are several locations in the United States in California and Oregon: San Bruno, Sunnyvale, Brisbane, and Portland. Locations outside of the United States include Shanghai (China), Leeds (United Kingdom), and Bangalore (India).[228]
Subsidiaries [ edit ]
Private label brands [ edit ]
About 40 percent of products sold in Walmart are private labels, which are produced for the company through contracts with manufacturers. Walmart began offering private label brands in 1991, with the launch of Sam’s Choice, a line of drinks produced by Cott Beverages for Walmart. Sam’s Choice quickly became popular and by 1993, was the third-most-popular beverage brand in the United States.[296] Other Walmart brands include Great Value and Equate in the U.S. and Canada and Smart Price in Britain. A 2006 study talked of “the magnitude of mind-share Walmart appears to hold in the shoppers’ minds when it comes to the awareness of private label brands and retailers.”[297]
Entertainment [ edit ]
In 2010, the company teamed with Procter & Gamble to produce Secrets of the Mountain and The Jensen Project, two-hour family movies which featured the characters using Walmart and Procter & Gamble-branded products. The Jensen Project also featured a preview of a product to be released in several months in Walmart stores.[298][299] A third movie, A Walk in My Shoes, also aired in 2010 and a fourth is in production.[when?][300] Walmart’s director of brand marketing also serves as co-chair of the Association of National Advertisers’s Alliance for Family Entertainment.[301]
Online commerce acquisitions and plans [ edit ]
In September 2016, Walmart purchased e-commerce company Jet.com, founded in 2014 by Marc Lore, to start competing with Amazon.com. Jet.com has acquired its own share of online retailers such as Hayneedle in March 2016, Shoebuy.com in December 2016, and ModCloth in March 2017. Walmart also acquired Parcel, a delivery service in New York, on September 29, 2017.[302][303]
On February 15, 2017, Walmart acquired Moosejaw, an online active outdoor retailer, for approximately $51 million. Moosejaw brought with it partnerships with more than 400 brands, including Patagonia, The North Face, Marmot, and Arc’teryx.[304]
Marc Lore, Walmart’s U.S. e-commerce CEO, said that Walmart’s existing physical infrastructure of almost 5,000 stores around the U.S. will enhance their digital expansion by doubling as warehouses for e-commerce without increasing overhead.[305] As of 2017, Walmart offers in-store pickup for online orders at 1,000 stores with plans to eventually expand the service to all of its stores.[306]
On May 9, 2018, Walmart announced its intent to acquire a 77% controlling stake in the Indian e-commerce website Flipkart for $16 billion[307] (beating bids by Amazon.com), subject to regulatory approval. Following its completion, the website’s management will report to Marc Lore.[308][309][310] Completion of the deal was announced on August 18, 2018.[311]
The company’s partnership with subscription service Kidbox was announced on April 16, 2019.[312]
Corporate affairs [ edit ]
Home office in Bentonville Arkansas in June 2009
Walmart is headquartered in the Walmart Home Office complex in Bentonville, Arkansas. The company’s business model is based on selling a wide variety of general merchandise at low prices.[10] Doug McMillon became Walmart’s CEO on February 1, 2014. He has also worked as the head of Sam’s Club and Walmart International.[313] The company refers to its employees as “associates”. All Walmart stores in the U.S. and Canada also have designated “greeters” at the entrance, a practice pioneered by Sam Walton and later imitated by other retailers. Greeters are trained to help shoppers find what they want and answer their questions.[314]
For many years, associates were identified in the store by their signature blue vest, but this practice was discontinued in June 2007 and replaced with khaki pants and polo shirts. The wardrobe change was part of a larger corporate overhaul to increase sales and rejuvenate the company’s stock price.[315] In September 2014, the uniform was again updated to bring back a vest (paid for by the company) for store employees over the same polos and khaki or black pants paid for by the employee. The vest is navy blue for Walmart employees at Supercenters and discounts stores, lime green for Walmart Neighborhood Market employees, and yellow for self-check-out associates; door greeters, and customer service managers. All three state “Proud Walmart Associate” on the left breast and the “Spark” logo covering the back.[316] Reportedly one of the main reasons the vest was reintroduced was that some customers had trouble identifying employees.[317] In 2016, self-checkout associates, door greeters and customer service managers began wearing a yellow vest to be better seen by customers. By requiring employees to wear uniforms that are made up of standard “streetwear”, Walmart is not required to purchase the uniforms or reimburse employees which are required in some states, as long as that clothing can be worn elsewhere. Businesses are only legally required to pay for branded shirts and pants or clothes that would be difficult to wear outside of work.[318]
Unlike many other retailers, Walmart does not charge slotting fees to suppliers for their products to appear in the store.[319] Instead, it focuses on selling more-popular products and provides incentives for store managers to drop unpopular products.[319]
From 2006 to 2010, the company eliminated its layaway program. In 2011, the company revived its layaway program.[320][321]
Walmart introduced its Site-To-Store program in 2007, after testing the program since 2004 on a limited basis. The program allows walmart.com customers to buy goods online with a free shipping option, and have goods shipped to the nearest store for pickup.[322]
On September 15, 2017, Walmart announced that it would build a new headquarters in Bentonville to replace its current 1971 building and consolidate operations that have spread out to 20 different buildings throughout Bentonville.[323]
According to watchdog group Documented, in 2020 Walmart contributed $140,000 to the Rule of Law Defense Fund, a fund-raising arm of the Republican Attorneys General Association.[324]
Finance and governance [ edit ]
For the fiscal year ending January 31, 2019, Walmart reported net income of US$6.67 billion on $514.405 billion of revenue. The company’s international operations accounted for $120.824 billion, or 23.7 percent, of its $510.329 billion of sales.[15][6] Walmart is the world’s 29th-largest public corporation, according to the Forbes Global 2000 list, and the largest public corporation when ranked by revenue.[325]
Walmart is governed by a eleven-member board of directors elected annually by shareholders. Gregory B. Penner, son-in-law of S. Robson Walton and the grandson-in-law of Sam Walton, serves as chairman of the board. Doug McMillon serves as president and chief executive officer. Current members of the board are:[326][6][327]
Notable former members of the board include Hillary Clinton (1985–1992)[328] and Tom Coughlin (2003–2004), the latter having served as vice chairman. Clinton left the board before the 1992 U.S. presidential election, and Coughlin left in December 2005 after pleading guilty to wire fraud and tax evasion for stealing hundreds of thousands of dollars from Walmart.[329]
After Sam Walton’s death in 1992, Don Soderquist, Chief Operating Officer and Senior Vice Chairman, became known as the “Keeper of the Culture”.[330]
Financial and other statistics Year Revenue Net Income Total Assets Price per
Share (US$) Employees Stores US$ millions 1968[331] 12.618754 0.481754 24 1969[331] 21.365081 0.605211 27 1970[331] 30.862659 1.187764 1,000 32 1971[332] 44.286012 1.651599 15.331 1,500 38 1972[332] 78.014164 2.907354 28.463 2,300 51 1973[333] 124.889141 4.591469 46.241 3,500 66 1974[334] 167.560892 6.15852 60.106 4,400 78 1975[335] 236.20888 6.353336 75.221 5,800 104 1976[336] 340.331 11.506 125.347 7,500 125 1977[337] 478.807 16.546 168.201 10,000 153 1978[338] 678.456 21.886 251.865 14,700 195 1979[339] 900.298 29.447 324.666 17,500 229 1980[340] 1,248.976 41.151 457.879 21,000 276 1981[341] 1,643.199 55.682 592.345 27,000 330 1982[342] 2,444.997 82.794 937.513 41,000 491 1983[343] 3,376.252 124.14 1,187.448 46,000 551 1984[344] 4,666.909 196.244 1,652.254 62,000 645 1985[345] 6,400.861 270.767 2,205.229 81,000 758 1986[346] 8,451.489 327.437 3,103.645 104,000 887 1987[347] 11,909.076 450.086 4,049.092 141,000 1,037 1988[348] 15,959.255 627.643 5,131.809 183,000 1,215 1989[349] 20,649.001 837.221 6,359.668 223,000 1,381 1990[350] 25,810.656 1,075.900 8,198.484 275,000 1,528 1991[351] 32,601.594 1,291.024 11,388.915 328,000 1,725 1992[352] 43,886.902 1,608.476 15,443.389 371,000 1,930 1993[353] 55,483.771 1,994.794 20,565.087 434,000 2,136 1994[354] 67,344.574 2,333.277 26,440.764 528,000 2,463 1995[355] 82,494 2,681 32,819 622,000 2,872 1996[356] 93,627 2,740 37,541 675,000 3,106 1997[357] 104,859 3,056 39,604 728,000 3,117 1998[358] 117,958 3,526 45,384 825,000 3,406 1999[359] 137,634 4,430 49,996 910,000 3,600 2000[360] 165,013 5,377 70,349 38.34 1,140,000 3,662 2001[360] 191,329 6,295 78,130 37.30 1,244,000 4,189 2002[361] 204,011 6,592 81,549 39.93 1,383,000 4,414 2003[361] 229,616 7,955 92,900 39.40 1,400,000 4,688 2004[361] 256,329 9,054 104,912 40.17 1,500,000 4,906 2005[362] 284,310 10,267 120,154 36.03 1,700,000 5,289 2006[363] 312,101 11,231 138,187 34.95 1,800,000 6,141 2007[364] 348,368 11,284 151,587 35.76 1,900,000 6,779 2008[365] 377,023 12,731 163,514 42.74 2,100,000 7,262 2009[366] 404,254 13,381 163,429 40.02 2,100,000 7,870 2010[367] 408,085 14,370 170,407 42.90 2,100,000 8,416 2011[368] 421,849 16,389 180,782 45.11 2,100,000 8,970 2012[369] 446,509 15,699 193,406 57.29 2,200,000 10,130 2013[370] 468,651 16,999 203,105 65.74 2,200,000 10,773 2014[371] 476,294 16,022 204,751 69.17 2,200,000 10,942 2015[372] 485,651 16,363 203,490 66.40 2,200,000 11,453 2016[373] 482,130 14,694 199,581 65.64 2,300,000 11,528 2017[374] 485,873 13,643 198,825 76.67 2,300,000 11,695 2018[375] 500,343 9,862 204,522 90.80 2,300,000 11,718 2019[376] 514,405 6,670 219,295 108.41 2,200,000 11,361 2020[377] 523,964 14,881 236,495 129.60 2,200,000 11,501 2021 559,151 13,510 252,500 2,200,000 11,443
property [edit]
Walmart Inc. is a Delaware-domiciled joint-stock company registered with the U.S. Securities and Exchange Commission, with its registered office located in Wolters Kluwer’s Corporation Trust Center in Wilmington. As of March 2017,[378] it has 3,292,377,090 outstanding shares. These are held mainly by the Walton family, a number of institutions and funds.[5][379]
competition [edit]
In North America, Walmart’s primary competitors include grocery stores and department stores like Aldi, Lidl, Kmart, Kroger, Ingles, Publix, Target, Harris Teeter, Meijer, and Winn Dixie in the United States; Hudson’s Bay, Loblaw retail stores, Sobeys, Metro, and Giant Tiger in Canada; and Comercial Mexicana and Soriana in Mexico. Competitors of Walmart’s Sam’s Club division are Costco and the smaller BJ’s Wholesale Club chain. Walmart’s move into the grocery business in the late 1990s set it against major supermarket chains in both the United States and Canada. Several smaller retailers, primarily dollar stores, such as Family Dollar and Dollar General, have been able to find a small niche market and compete successfully against Walmart.[381] In 2004, Walmart responded by testing its own dollar store concept, a subsection of some stores called “Pennies-n-Cents.”[382]
Walmart also had to face fierce competition in some foreign markets. For example, in Germany it had captured just 2 percent of the German food market following its entry into the market in 1997 and remained “a secondary player” behind Aldi with 19 percent.[383] Walmart continues to do well in the UK, where its Asda subsidiary is the second-largest retailer.[384]
In May 2006, after entering the South Korean market in 1998, Walmart sold all 16 of its South Korean outlets to Shinsegae, a local retailer, for US$882 million. Shinsegae re-branded the Walmarts as E-mart stores.[385]
Walmart struggled to export its brand elsewhere as it rigidly tried to reproduce its model overseas. In China, Walmart hopes to succeed by adapting and doing things preferable to Chinese citizens. For example, it found that Chinese consumers preferred to select their own live fish and seafood; stores began displaying the meat uncovered and installed fish tanks, leading to higher sales.[386]
Customer base [ edit ]
Walmart customers cite low prices as the most important reason for shopping there.[387] The average U.S. Walmart customer’s income is below the national average.[388] A 2006 Walmart report also indicated that Walmart customers are sensitive to higher utility costs and gas prices.[388] A poll indicated that after the 2004 US presidential election, 76 percent of voters who shopped at Walmart once a week voted for George W. Bush while only 23 percent supported senator John Kerry.[389] When measured against similar retailers in the U.S., frequent Walmart shoppers were rated the most politically conservative.[390] Thus, as of 2014, the “majority (54 percent) [of] Americans who prefer shopping at Walmart report that they oppose same-sex marriage, while 40 percent are in favor of it.”[391]
Due to its prominence in the Bible Belt, Walmart is known for its “tradition of tailoring its service to churchgoing customers”.[392][393] Walmart only carries clean versions of hip-hop audio CDs and in cooperation with The Timothy Plan, places “plastic sheathes over suggestive women’s periodicals and banned ‘lad mags’ such as Maxim” magazine.[392][393] In addition, Walmart also caters to its Christian customer base by selling Christian books and media,[392][394] “such as VeggieTales videos and The Purpose-Driven Life”, which earns the company over US$1 billion annually.[394][395]
In 2006, Walmart took steps to expand its U.S. customer base, announcing a modification in its U.S. stores from a “one-size-fits-all” merchandising strategy to one designed to “reflect each of six demographic groups—African-Americans, the affluent, empty-nesters, Hispanics, suburbanites, and rural residents.”[396] Around six months later, it unveiled a new slogan: “Saving people money so they can live better lives”. This reflects the three main groups into which Walmart categorizes its 200 million customers: “brand aspirationals” (people with low incomes who are obsessed with big name brands), “price-sensitive affluents” (wealthier shoppers who love deals), and “value-price shoppers” (people who like low prices and cannot afford much more).[387] Walmart has also made steps to appeal to more liberal customers, for example, by rejecting the American Family Association’s recommendations and carrying the DVD Brokeback Mountain, a love story between two gay cowboys in Wyoming.[397]
Sales of guns and ammunition [ edit ]
Walmart stopped selling handguns in all U.S. states, except for Alaska, in 1993.[398]
In 2018, Walmart stopped selling guns and ammunition to persons younger than 21, following a similar move by Dick’s Sporting Goods on the same day.[399] In the same year, Walmart stopped selling military-style rifles that were commonly used in mass shootings.[398]
As of 2019, Walmart was a major retailer of firearms and ammunition.[400] In 2019, after 23 people[401] were killed in a mass shooting at a Walmart store in El Paso, Texas, Walmart announced that it would stop selling all handgun ammunition and certain short-barreled rifle ammunition.[400] The company also announced that it would stop selling handguns in Alaska, the only state where the company still sold handguns.[399] The move was expected to reduce Walmart’s U.S. market share in ammunition from around 20% to around 6–9%.[399] Walmart also stated that it was “respectfully requesting” that customers not openly carry weapons in Walmart stores, except for authorized law enforcement officers.[400][399]
Following the fatal police shooting of Walter Wallace Jr. in October 2020, Walmart temporarily removed gun and ammunition displays in thousands of stores across the U.S. from sales floors, grounding their reason in concerns of civil unrest. Company spokesman Kory Lundberg said in a statement that “We have seen some isolated civil unrest and as we have done on several occasions over the last few years, we have moved our firearms and ammunition off the sales floor as a precaution for the safety of our associates and customers.” Firearms and ammunition will still be available for purchase on request, but the duration of the removal of both from the sales floor remains undetermined.[402]
technology [edit]
Open source software [ edit ]
Many Walmart technology projects are coded in the open and available through the Walmart Labs GitHub repository[403] as open-source software under the OSI approved Apache V2.0 license. As of November 2016, 141 public GitHub projects are listed.
During a migration of the walmart.com retail platform to Facebook React and Node.js, the Electrode[404] project was created to power the e-commerce platform which serves 80 million visitors per month and 15 million items.
The electrode provides various developer enhancements and tools for the developer including Node.js configuration and feature management.
Alex Grigoryan[405] of Walmart Labs released a statement[406] on Medium.com on October 3, 2016, explaining the details of the applications and the scale that they operate at Walmart.
Big data analytics [ edit ]
As the largest retailer in the U.S., Walmart collects and analyzes a large amount of consumer data. The big data sets are mined for use in predictive analytics, which allow the company to optimize operations by predicting customer’s habits. Walmart’s datacenter is unofficially referred to as Area 71.[407]
In April 2011, Walmart acquired Kosmix to develop software for analyzing real-time data streams.[408] In August 2012, Walmart announced its Polaris search engine.[409]
The amount of data gathered by Walmart has raised privacy concerns.[410][411][412]
Cash handling [ edit ]
in 2016, Walmart began a drive to automate much of the cash handling process. Walmart began replacing employees who count currency by hand with machines that count 8 bills per second and 3,000 coins a minute. The processing machines, located in the back of stores, allow cashiers to process the money for electronic depositing.[413][414]
Charity [ edit ]
Sam Walton believed that the company’s contribution to society was the fact that it operated efficiently, thereby lowering the cost of living for customers, and, therefore, in that sense was a “powerful force for good”, despite his refusal to contribute cash to philanthropic causes.[415] Having begun to feel that his wealth attracted people who wanted nothing more than a “handout”, he explained that while he believed his family had been fortunate and wished to use his wealth to aid worthy causes like education, they could not be expected to “solve every personal problem that comes to [their] attention”. He explained later in his autobiography, “We feel very strongly that Wal-Mart really is not, and should not be, in the charity business,” stating “any debit has to be passed along to somebody—either shareholders or our customers.”[416] Since Sam Walton’s death in 1992, however, Walmart and the Walmart Foundation dramatically increased charitable giving. For example, in 2005, Walmart donated US$20 million in cash and merchandise for Hurricane Katrina relief and in 2020 they committed $25 million to organizations on the frontlines of the COVID-19 pandemic response.[417] Today, Walmart’s charitable donations approach US$1 billion each year.[418]
As of January 2021, healthcare workers could get vaccines through Walmart in New Mexico and Arkansas. Walmart planned to offer vaccines in Georgia, Indiana, Louisiana, Maryland, New Jersey, South Carolina, Texas, Chicago and Puerto Rico with the target of delivering between 10 million and 13 million doses per month at full capacity.[419][420][421]
In May 2021, Walmart said that starting from May 18 all its fully vaccinated employees can stop wearing masks at work following the guidance from the U.S. Centers for Disease Control and Prevention.[422]
Economic impact [ edit ]
Kenneth Stone, Professor of Economics at Iowa State University, in a paper published in Farm Foundation in 1997, found that some small towns can lose almost half of their retail trade within ten years of a Walmart store opening. He compared the changes to previous competitors small town shops have faced in the past—from the development of the railroads and the Sears Roebuck catalog to shopping malls. He concludes that small towns are more affected by “discount mass merchandiser stores” than larger towns and that shop owners who adapt to the ever-changing retail market can “co-exist and even thrive in this type of environment.”[59]
One study found Walmart’s entry into a new market has a profound impact on its competition. When a Walmart opens in a new market, median sales drop 40 percent at similar high-volume stores, 17 percent at supermarkets and 6 percent at drugstores, according to a June 2009 study by researchers at several universities and led by the Tuck School of Business at Dartmouth College.[423] A Loyola University Chicago study suggested that the impact a Walmart store has on a local business is correlated to its distance from that store. The leader of that study admits that this factor is stronger in smaller towns and doesn’t apply to more urban areas saying “It’d be so tough to nail down what’s up with Wal-Mart”.[424] These findings are underscored by another study conducted in 2009 by the National Bureau of Economics that showed “large, negative effects” for competing businesses within 5 to 10 miles (8 to 16 km) of the newly opening big-box retailer. This same study also found that the local retailers experience virtually no benefit.[425] Walmart’s negative effects on local retailers may be partially explained by studies that find that local firms re-invest nearly 63 percent more of profits in other local businesses compared to chain retailers, as found by the Maine Center of Economic Policy in 2011.[426]
David Merriman, Joseph Persky, Julie Davis and Ron Baiman did a study in Economic Development Quarterly outlining the impacts of Walmart in Chicago. The study draws from three annual surveys of enterprises within a four-mile radius of a new Chicago Walmart and it “shows that the probability of going out of business was significantly higher for establishments close to that store”. The study illustrated how approximately 300 jobs were lost due to the opening of the store, which is about equivalent to Walmart’s employment in the area. The overall findings of this study reinforce the “contention that large-city Walmarts, like those in small towns, absorb retail sales from nearby stores without significantly expanding the market” as this is one of the first studies of Walmarts economic impacts on local economies.[427]
Labor relations [ edit ]
With over 2.3 million employees worldwide, Walmart has faced a torrent of lawsuits and issues with regards to its workforce. These issues involve low wages, poor working conditions, inadequate health care, and issues involving the company’s strong anti-union policies. In November 2013, the National Labor Relations Board (NLRB) announced that it had found that in 13 U.S. states, Wal-Mart had pressured employees not to engage in strikes on Black Friday, and had illegally disciplined workers who had engaged in strikes.[439] Critics point to Walmart’s high turnover rate as evidence of an unhappy workforce, although other factors may be involved. Approximately 70 percent of its employees leave within the first year.[440] Despite this turnover rate, the company is still able to affect unemployment rates. This was found in a study by Oklahoma State University which states, “Walmart is found to have substantially lowered the relative unemployment rates of blacks in those counties where it is present, but to have had only a limited impact on relative incomes after the influences of other socio-economic variables were taken into account.”[441]
Walmart is the largest private employer in the United States, employing almost five times as many people as IBM, the second-largest employer.[442] Walmart employs more African Americans than any other private employer in the United States.[443]
Walmart rebranded their Associate Education Benefits to Live Better U in March 2019. Live Better U supports associate education at every level and includes $1 a day college program, cost-free high school education, and discounts on higher education programs through partnership with Guild Education.
In April 2019, Walmart Inc. announced plans to extend the use of robots in stores in order to improve and monitor inventory, clean floors and unload trucks, part of the company’s effort to lower its labor costs.[444]
In June 2019, Walmart Inc. announced the expansion of education benefits to recruit high school students. The incentives include flexible work schedules, free SAT and ACT preparation courses, up to seven hours of free college credit, and a debt-free college degree in three fields from six nonprofit universities.[445]
Gender [ edit ]
In 2007, a gender discrimination lawsuit, Dukes v. Wal-Mart Stores, Inc., was filed against Walmart, alleging that female employees were discriminated against in matters regarding pay and promotions. A class action suit was sought, which would have been the nation’s largest in history, covering 1.5 million past and current employees.[446] On June 20, 2011, the United States Supreme Court ruled in Wal-Mart’s favor, stating that the plaintiffs did not have enough in common to constitute a class.[447] The court ruled unanimously that because of the variability of the plaintiffs’ circumstances, the class action could not proceed as presented, and furthermore, in a 5–4 decision that it could not proceed as any kind of class action suit.[448] Several plaintiffs, including the lead plaintiff, Betty Dukes, expressed their intent to file individual discrimination lawsuits separately.[449]
According to a consultant hired by plaintiffs in a sex discrimination lawsuit, in 2001, Wal-Mart’s Equal Employment Opportunity Commission filings showed that female employees made up 65 percent of Wal-Mart’s hourly paid workforce, but only 33 percent of its management.[450][451] Just 35 percent of its store managers were women, compared to 57 percent at similar retailers.[451] Wal-Mart says comparisons with other retailers are unfair, because it classifies employees differently; if department managers were included in the totals, women would make up 60 percent of the managerial ranks.[451]
Sexual orientation and gender identity [ edit ]
In the Human Rights Campaign’s (HRC) 2002 Corporate Equality Index, a measure of how companies treat LGBT employees and customers, gave Wal-Mart Stores Inc. a score of 14%.[452] By 2017, however, HRC’s 2017 Corporate Equality Index gave Wal-Mart Stores Inc. a score of a 100%.[453] In 2003, Walmart added sexual orientation to their anti-discrimination policy.[454] In 2005, Walmart’s definition of family began including same-sex partners.[455][456][457] In 2006, Walmart announced that “diversity efforts include new groups of minority, female and gay employees that meet at Walmart headquarters in Bentonville to advise the company on marketing and internal promotion. There are seven business resource groups: women, African Americans, Hispanics, Asians, Native Americans, gays and lesbians, and a disabled group.”[458] From 2006 to 2008, Walmart was a member of the National Gay & Lesbian Chamber of Commerce.[459] In 2011, Walmart added gender identity to their anti-discrimination policy.[460] Walmart’s anti-discrimination policies allow associates to use restroom facilities that corresponds with their gender identity and gender expression.[461] In 2013, Walmart began offering health insurance benefits to domestic partners.[459] In 2015, Doug McMillon, CEO of Walmart, issued a statement opposing House Bill 1228 and asked Governor Asa Hutchinson to veto the bill.[462] In 2016, Walmart added full healthcare benefits to its transgender employees.[463]
Criticism and controversies [ edit ]
Walmart has been subject to criticism from various groups and individuals, including labor unions, community groups, grassroots organizations, religious organizations, environmental groups, firearm groups, and the company’s own customers and employees. They have protested against the company’s policies and business practices, including charges of racial and gender discrimination.[464][465][466] Other areas of criticism include the company’s foreign product sourcing, treatment of suppliers, employee compensation and working conditions, environmental practices, the use of public subsidies, the company’s security policies, and slavery.[467][468] Walmart denies doing anything wrong and maintains that low prices are the result of efficiency.[469][470][471]
In April 2016, Walmart announced that it plans to eliminate eggs from battery cages from its supply chain by 2025.[472] The decision was particularly important because of Walmart’s large market share and influence on the rest of the industry.[473][474] The move was praised by major animal welfare groups[475] but a poultry trade group representative expressed skepticism about the decision’s impact.[475] Walmart’s cage-free eggs will not come from free range producers, but rather industrial-scale farms where the birds will be allotted between 1 and 1.5 square feet each, a stressful arrangement which can cause cannibalism.[473][475] Unlike battery cages, the systems of Walmart’s suppliers allow the hens to move around, but relative to battery cages they have higher hen mortality rates and present distinct environmental and worker health problems.[476]
In March 2018, Walmart was sued by former Director of Business Development Tri Huynh for claims of reporting misleading e-commerce performance results in favor of the company. Huynh stated the company’s move was an attempt to regain lost ground to competitor Amazon.[477]
In September 2018, Walmart was sued by Equal Employment Opportunity Commission alleging that Walmart denied requests from pregnant employees to limit heavy lifting.[478]
In May 2019, the Center for Inquiry filed a lawsuit in the District of Columbia alleging consumer fraud and the endangering of its customers’ health due to Walmart’s practice of “selling homeopathic [products] alongside real medicine, in the same sections in its stores, under the same signs,” according to Nicholas Little, CFI’s vice president and general counsel.[479][480] On May 20, 2020, District of Columbia Superior Court Judge Florence Pan dismissed CFI’s lawsuit, claiming that CFI had no standing as a consumer protection organization and failed to identify the specific actions on the part of Walmart that lead to harm to consumers. CFI has challenged both of those arguments and is planning an appeal.[481]
In July 2019, the Walmart subreddit was flooded with pro-union memes in a protest to the firing of an employee who posted confidential material to the subreddit.[482][483] Many of these posts were angry with Walmart surveying its staff on the Internet. The posting of the union content is in response to the aforementioned alleged anti-union position Walmart has taken in the past.[484]
In November 2021, a federal jury found that Walmart, along with Walgreens and CVS, “had substantially contributed to” the opioid crisis.[485]
In June 2022, the Federal Trade Commission (FTC) sued Walmart, alleging that the company facilitated money transfer fraud. The FTC claimed that Walmart allowed its money transfer services to be used by scammers who stole hundreds of millions of dollars from customers. [486] [487]
2010s crime problem [ edit ]
According to an August 2016 report by Bloomberg Businessweek, aggressive cost-cutting decisions that began in 2000 when Lee Scott took over as CEO of the company led to a significant increase in crime in stores across the United States. These included the removal of the store’s famed greeters, who are in part seen as a theft deterrent at exits, the replacement of many cashiers with self-checkout stations, and the addition of stores at a rate that exceeded the hiring of new employees, which led to a 19% increase in space per employee from a decade previous. While these decisions succeeded in increasing profits 23% in the decade that followed, they also led to an increase in both theft and violent crime.[488]
In 2015, under CEO Doug McMillon, Walmart began a company-wide campaign to reduce crime that included spot-checking receipts at exits, stationing employees at self-checkout areas, eye-level security cameras in high-theft areas, use of data analytics to detect credit fraud, hiring off-duty police and private security officers, and reducing calls to police with a program by which first-time offenders caught stealing merchandise below a certain value can avoid arrest if they agree to go through a theft-prevention program.[488]
Law enforcement agencies across the United States have noted a burden on resources created by a disproportionate number of calls from Walmart. Experts have criticized the retailer for shifting its security burden onto the taxpayers. Across three Florida counties, approximately 9,000 police calls were logged to 53 Walmart stores but resulted in only a few hundred arrests.[489] In Granite Falls, North Carolina, 92% of larceny calls to local police were from the Walmart store there.[490] The trend is similar in rural, suburban, and urban areas. Police are called to Walmart stores 3 to 4 times as much as similar retailers such as Target.[491] Experts say the chain and its razor-thin profit margins rely heavily on police to protect its bottom line. Walmart Supercenters top the list of those most visited by police.[489]
The police captain in Port Richey, Florida, said that Target stores more often have uniformed security, as well as more visible staff in any case. Another comparison might be shopping malls which often have security patrols and off-duty police officers. J.R. Roberts, a former director for risk management at Valor Security Services (which provides mall security) says: “Shopping centers all have security; they know it’s an expense, but one they know pays dividends because people feel safer going to their stores.”[488]
In addition to hundreds of thousands of petty crimes, more than 200 violent crimes, including attempted kidnappings, stabbings, shootings, and murders occurred at the 4,500 Walmarts in the U.S. in 2016.[488] In 2019, 23 people were killed in a mass shooting at a Walmart store in El Paso, Texas.[399][401]
On June 27, 2020, a shooting occurred at a Walmart distribution center in Red Bluff, California, United States. One employee was killed, four other employees were wounded, and the shooter was killed by officers.[492][493][494][495]
In April 2022, Walmart decided to take service dog paraphernalia out of stores and online, following an online petition to have them stop selling service dog vests.[496]
In popular culture[edit]
See also[edit]
References[ edit ]
Coordinates:
What is the difference between mechanical and organic solidarity quizlet?
The basic distinction between societies based on mechanical and organic solidarity, is that mechanical societies have a strong collective morality, and that organic societies have a pre-contractual solidarity, where they have a moral obligation to do one’s part in their division of labor.
SOC Chapter 4 Flashcards
the social cohesion of small, undifferentiated societies (mechanical) and of societies differentiated by a relatively complex division of labor (organic).
Mechanical solidarity is the social integration of members of a society who share common values and beliefs. These shared values and beliefs form a “collective conscience” that works internally within each member to compel them to work together. Because Durkheim believed that the forces that make members of society work together are very similar to the internal energies that cause molecules to stick together in a solid, he drew on terminology from the natural sciences to coin the term mechanical solidarity .
In contrast to mechanical solidarity, organic solidarity is social integration that arises from the individual’s need for mutual performance. In a society characterized by organic solidarity, there is a relatively greater division of labor, with individuals functioning much like the interdependent but differentiated organs of a living body. Society relies less on imposing uniform rules on all than on regulating the relationships between different groups and individuals, often through the increased use of contracts and laws.
What do sociologists mean by social construction of reality quizlet?
The social construction of reality. the process by which people creatively shape reality through social interactions.
SOC Chapter 4 Flashcards
How is reality constructed?
Sociologists generally accept that reality is different for each individual. The term social construction of reality refers to the theory that the way we present ourselves to other people is shaped partly by our interactions with others, as well as by our life experiences.
SOC Chapter 4 Flashcards
The term social construction of reality refers to the theory that the way we present ourselves to other people is shaped in part by our interactions with others, as well as by our life experiences. How we were raised and what we were raised to believe affects how we present ourselves, how we perceive others, and how others perceive us. In short, our perception of reality is colored by our beliefs and backgrounds.
Our reality is also a complicated negotiation. What is real depends on what is socially accepted. Most social interactions involve some acceptance of what is going on. Although we participate in the construction of reality, it is not solely a product of our own doing.
Example: A wealthy person whose basic survival needs are met many times over buys their pets organic deli food that costs more per week than the weekly earnings of a minimum-wage worker. He prides himself on being so good at caring for his animals and insists that truly loving your pets is the right thing to do. After all, it was his vet who recommended him to buy this brand. A minimum wage worker who loads that food into the rich person’s car might get angry when they realize how much money that person is spending on their pets. The minimum-wage worker might get upset that this man’s pets eat better than he does. He might wonder if this rich man has any idea of reality.
How we define everyday situations depends on our respective backgrounds and experiences. The wealthy individual has learned through interactions with others that spending money on their pets is a worthwhile expense. His reality is one of pride. The minimum-wage worker has learned through interactions with others that spending so much money on a pet is a negative thing, so his perception of the situation is completely different.
The Thomas theorem
What is the “real” reality? Is buying an expensive pet food the right thing to do or a waste of money? Sociologist W.I. Thomas says, “If a person perceives a situation as real, it is real in its consequences.” This statement is also known as Thomas’ theorem. In other words, our behavior does not depend on the objective reality of a situation, but on our subjective interpretation of reality. The consequences and results of the behavior make it real. For example, a teenager who is defined as deviant might begin to behave deviantly. He lives up to his label.
People perceive reality differently, and when they choose how they see a person or situation, they act accordingly. Since we all perceive reality differently, our reactions differ. Our definition of a situation as good or bad, accepting or avoiding it determines our response to it.
ethnomethodology
Ethnomethodology, founded by sociologist Harold Garfinkel, is a theory that examines how we understand everyday situations. Even if we see a situation differently than the people around us, our background provides us with some basic assumptions about daily life. Ethnomethodology examines what these background assumptions are, how we arrive at them, and how they affect our perception of reality. To understand these assumptions, ethnomethodology students are often taught to violate or challenge the taken-for-granted assumptions we have about everyday life.
Which is more useful Microsociology or Macrosociology?
The macrosociological perspective is more useful because it explains how large-scale social institutions influence individuals. b. The microsociological perspective is more useful because it explains how individuals shape and create large-scale social institutions.
SOC Chapter 4 Flashcards
a. The macrosociological perspective is more useful because it explains how large social institutions affect individuals.
b. The microsociological perspective is more useful because it explains how individuals shape and create large social institutions.
c. Both are useful, and any study using only one or the other will not be able to explain anything useful about society.
i.e. Both are useful in different ways, as they each provide different types of information about the same subject of investigation.
What 2 sociological perspectives are most linked to Macrosociology?
The two sociological perspectives that are most linked to macrosociology are conflict theory and structural-functionalism.
SOC Chapter 4 Flashcards
What two sociological perspectives are most closely associated with macrosociology?
macrosociology:
Macrosociology is a term that refers to the sociology that studies society as a whole, rather than examining groups within a society or specific elements or institutions of a society. Macrosociology aims to explain all societies from a broad perspective.
Answer and Explanation:
Which of the following statements best characterizes Microsociology?
Which of the following best characterizes microsociology? It is an approach that examines interactions between individuals and the ways those in interactions reflect larger patterns within a society.
SOC Chapter 4 Flashcards
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Sociology Chapter 4-6 assignments Flashcards
Sarah has never seen germs, but she worries about it. She does not eat food that has fallen on the floor, even in her mother’s house, which is immaculate. Which of the following statements best explains this situation?
Sociology 1301 Chapter 4- Social Structure and Social Interaction Flashcards
Sarah has never seen germs, but she worries about it. She does not eat food that has fallen on the floor, even in her mother’s house, which is immaculate. Which of the following statements best explains this situation?
SOC Chapter 4 Flashcards
Sarah has never seen germs, but she worries about it. She does not eat food that has fallen on the floor, even in her mother’s house, which is immaculate. Which of the following statements best explains this situation?
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