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Walmart's strategy is to grow in ____ areas

01/05/2021 Client: muhammad11 Deadline: 2 Day

Part A
Walmart Stores (Walmart) is the world's largest retailer. It employs an ''everyday low price'' strategy and operates stores as three business segments: Walmart Stores U.S., International, and Sam's Club.

1. Walmart Stores U.S.: This segment represented 62.3% of all 2015 sales and operates stores in three different formats: Discount stores (104,000 average square feet), Supercenters (178,000 average square feet), and Neighborhood Markets (42,000 average square feet). Each format carries a variety of clothing, housewares, electronic equipment, pharmaceuticals, health and beauty products, sporting goods, and similar items, and Supercenters include a full-line supermarket.28 Walmart U.S. stores are in all 50 states; Washington, D.C.; and Puerto Rico. Discount stores are in 41 states, Supercenters are in 49 states, and Neighborhood Markets are in 31 states. Customers also can purchase many items through the company's website at www.walmart.com.

2. International: The International segment includes wholly owned subsidiaries in Argentina, Brazil, Canada, Chile, China, India, Japan, and the United Kingdom; majority-owned subsidiaries are in Africa, Central America, and Mexico. The merchandising strategy for the International segment is similar to that of the Walmart U.S. segment.

3. Sam's Clubs: Sam's Clubs are membership club warehouses that operate in 48 states. The average Sam's Club is approximately 134,000 square feet, and customers can purchase many items through the company's website at www.samsclub.com. These warehouses offer bulk displays of brand name merchandise, including hard goods, some soft goods, institutional-size grocery items, and certain private-label items. Gross margins for Sam's Clubs stores are lower than those of the U.S. and International segments.

Walmart uses centralized purchasing through its home office for substantially all of its merchandise. It distributes products to its stores through regional distribution centers. During fiscal 2015, the proportion of merchandise channeled through its regional distribution centers was as follows:

Walmart Discount Stores, Supercenters, and Neighborhood Markets .................... 79%
Sam€™s Club (nonfuel) ....................................................................................................... 69%
International ...............

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