Abstract

At a time when most of the retailers across the US and the world were reporting poor financial and business performance due to global economic slowdown, Wal-Mart Inc., (Wal-Mart), the world’s largest retail chain in terms of revenues, posted net sales of US$ 401.2 billion for the fiscal year 2009, a 7.2 percent increase over the fiscal 2008. Analysts attributed the company’s success to its policies like cost leadership, environment sustainability and providing products at Every Day Low Prices (EDLP). These policies prompted customers of up-market retail chains to shop at Wal-Mart and Sam’s Club stores. The case ends with a debate whether this trend will be sustainable and whether Wal-Mart will be able to retain these customers after the US and global economy recovers.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the importance of cost leadership and pricing strategies amidst an economic downturn.
• Analyze the benefits and pitfalls of restructuring operations in an economic downturn.
• Examine the importance of environment sustainability in a retail business.

Keywords

Wal-Mart Stores Inc, Fortune 500 companies, Business Environment, Price Leadership, Economic Slowdown, Downturn, Recession, Everyday Low Prices, Win, Play, and Show Strategy, Credit Crisis, Great Value brand, Sam's Club Members' Warehouse, Value for Money Products, Multicultural Consumer Segments, Branding, Sustainability 360, US Retail Industry, US Unemployment Rate