Really, who doesn't know Walmart? It's the biggest retailer in the world by revenue, and a brand name that people recognize almost anywhere around the world. The Walmart business model is derived from the 19th century five-and-dime store model. Basically, it's the kind of place where you can buy a wide variety of items, ranging from food, clothing, and household goods to electronics and toys.
Early on, Walmart's business strategy was to put their stores in more rural, remote locations, so they they wouldn't have to compete with other big retailers. Nowadays, market experts credit that as a main component of the retailer's success. On the other hand, it also led to a lot of small business being forced to close, so Walmart has gotten a lot of criticism over the years for that.
The first Walmart store was opened in Arkansas in 1962. It was named the "Wal-Mart Discount City," and Sam Walton was the founder that wanted to combine low prices and good customer experiences. Walmart started out as a family-friendly, customer-oriented store, and soon, when the 1980s rolled around, they had 276 stores around the country.
Experts say that what made Walmart stand out amongst competitors was their low prices, a wide selection of goods, and family-friendly ideals. In the 1990s, it expanded to other countries like Mexico—and even to China. Nowadays, Walmart also operates in Canada, Chile, India, and several Central American and African countries.
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Those who have worked at Walmart know that it has a somewhat peculiar, albeit wholesome tradition. It's the "Walmart cheer"; a chant employees have to do daily to keep their spirits up and offer customers the best service possible. Founder Sam Walton was inspired to incorporate the Walmart cheer into his stores after a visit to a Korean tennis ball manufacturing facility. But whether or not employees actually like the tradition, well, we'll leave that for you to decide for yourselves.
One of the core principles of Walmart is its low prices. The retailer has always been focused on convincing their customers that they won't find such low prices anywhere else. This means that Walmart's net profit margin has remained around 1-5% for most of its existence since the 1960s. Most businesses that deliver goods bought online, for example, have margins in the range of 60%.
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So, how did Walmart become a hub for the weird and the quirky? In 2011, Walmart spokesperson Lorenzo Lopez told NPR that the stores are, in essence, a mirror of the American people. "Over the years, Walmart has become a microcosm of American life," he said. "Some of the stories that make news are the unusual and sometimes unfortunate events, but the ones we embrace are the simple acts of kindness we see every day among our associates and customers."
Charles Fishman, the author of The Wal-Mart Effect: How the World's Most Powerful Company Really Works – and How It's Transforming the American Economy, agrees, and says that Walmarts have sort of become the modern version of town squares in America. "Walmart, long accused of draining the life from the town squares and main streets of small-town America, has gradually become the main square of the United States, replacing the place it has helped put out of business," he explained.
