Background Summary
“Wal-Mart slashes prices, offers extreme buys, gives back to its communities and helps citizens of the world to live better…Wal-Mart rezones our cities, determines the real minimum wage, channels capital throughout the world, and conducts a kind of international diplomacy. It keeps people locked in, employs illegal immigrants, is involved in sex discrimination lawsuits, lowers wages, and doesn’t pay enough health benefits” (CNBC, 2004) according to many American citizens when it comes to the success of Wal-Mart Stores, it is a never ending battle between good and bad.
The beginning of retail discounting, as many believe, did not start with the opening of chain stores such as Target, Wal-Mart and Kmart in 1962, however, retail discounting began in the 1950’s when Sam Walton’s stores encountered stiff competition from other area discount stores. Sam traveled all over the United States studying discount retailing. He soon came to the conclusion that consumers wanted something new, therefore Sam and his wife Helen put up 95 percent of the money for the first Wal-Mart store which opened in 1962 in Rogers, Ark and employed only 25 associates. (Wal-Mart History, 2008) Looking back today, many individuals probably would not have believed that Wal-Mart would become one of the world’s biggest retailers in comparison to the then discount giants Woolworth and Sears Roebuck.
Retail discount giants expanded in the 1960’s tremendously, and even though Sam Walton wanted to be competitive in the retail discount industry, he only had enough money to build 15 stores. Finally, in 1972 Wal-Mart went public on the New York Stock Exchange, which helped boost Wal-Mart to a total of 276 stores operations in 11 states by 1980. (Wal-Mart History, 20 ...