{"id":38909,"date":"2021-06-09T12:12:00","date_gmt":"2021-06-09T16:12:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=38909"},"modified":"2021-06-16T18:13:59","modified_gmt":"2021-06-16T22:13:59","slug":"death-of-sam-walton","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/death-of-sam-walton\/","title":{"rendered":"Did the Death of Sam Walton Stunt Wal-Mart&#8217;s Growth?"},"content":{"rendered":"\n<p>What did Wal-Mart look like prior to the death of Sam Walton? How did Sam Walton&#8217;s business strategies <a href=\"https:\/\/www.shortform.com\/blog\/be-an-inspiration\/\">inspire others<\/a>?<\/p>\n\n\n\n<p>Before the death of Sam Walton, Wal-Mart had grown to over fifteen thousand stores nationwide and Walton was hoping to expand internationally. Walton had also recently opened Sam&#8217;s Club in response to Wal-Mart&#8217;s ultra-discount competitors like Price Club.<\/p>\n\n\n\n<p>Keep reading to learn what Wal-Mart was like right before the death of Sam Walton.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Nearing the End of Walton\u2019s Life<\/strong><\/h2>\n\n\n\n<p>Competition heated up in the 1970s, especially from Kmart, and Wal-Mart tackled them head-on in their territories.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In Springfield, MO, Wal-Mart had 40 stores within 100 miles. When Kmart came in with 3 stores, they had a tough time competing.<\/li><li>Wal-Mart also acquired a few chains in areas where they had little presence, like 100 of Kuhn\u2019s Big K stores in the South. This geographical spread forced them to upgrade their communication and management practices.<\/li><\/ul>\n\n\n\n<p>In 1983, Wal-Mart faced competition from ultra-discounters like Price Club, which sold at a meager 6% markup compared to 22% in discount stores. In response, Wal-Mart started Sam\u2019s Club. <strong>Sam felt this was something like a second childhood, a chance to build a company all over again.<\/strong><\/p>\n\n\n\n<p>The book was published in 1992, the same year as the death of Sam Walton. At the end of his life, Sam Walton focused on two things in Wal-Mart\u2019s future: 1) international expansion, and 2) competition in <a href=\"https:\/\/www.shortform.com\/blog\/innovations-in-retail\/\">discount retailing<\/a>. He confidently expresses that no competitor has been able to operate on their volume as efficiently, nor service customers as well.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Wal-Mart&#8217;s 30 Year Growth <\/h3>\n\n\n\n<p>As a final record, here is a summary of Wal-Mart\u2019s staggering growth over 30 years.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Year<\/strong><\/td><td><strong>Stores<\/strong><\/td><td><strong>Sales<\/strong><\/td><td><strong>Profits<\/strong><\/td><\/tr><tr><td>1960<\/td><td>9<\/td><td>$1.4 million<\/td><td>$.1 million<\/td><\/tr><tr><td>1970<\/td><td>32<\/td><td>$31 million<\/td><td>$1.2 million<\/td><\/tr><tr><td>1980<\/td><td>276<\/td><td>$1200 million<\/td><td>$41 million<\/td><\/tr><tr><td>1984<\/td><td>600<\/td><td>$4500 million<\/td><td>$200 million<\/td><\/tr><tr><td>1990<\/td><td>1528<\/td><td>$26000 million<\/td><td>$1000 million<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Sam Walton passed away before Amazon rose to challenge Wal-Mart for retail supremacy. Given Walton\u2019s successful history of adapting to trends like discount stores and mega-stores, it would have been fascinating to see how Walton would have taken advantage of the Internet.&nbsp;<\/p>\n\n\n\n<p>Amazon founder Jeff Bezos considers <em>Made in America<\/em> required reading for Amazon managers. Read more about Bezos and Amazon in <a href=\"https:\/\/www.shortform.com\/app\/book\/the-everything-store\">our summary of The Everything Store.<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What did Wal-Mart look like prior to the death of Sam Walton? How did Sam Walton&#8217;s business strategies inspire others? Before the death of Sam Walton, Wal-Mart had grown to over fifteen thousand stores nationwide and Walton was hoping to expand internationally. Walton had also recently opened Sam&#8217;s Club in response to Wal-Mart&#8217;s ultra-discount competitors like Price Club. Keep reading to learn what Wal-Mart was like right before the death of Sam Walton.<\/p>\n","protected":false},"author":8,"featured_media":39018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,39,33],"tags":[386],"class_list":["post-38909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-history","category-people","tag-sam-walton-made-in-america","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Did the Death of Sam Walton Stunt Wal-Mart&#039;s Growth? - Shortform Books<\/title>\n<meta name=\"description\" content=\"Right before the death of Sam Walton, Wal-Mart was thriving. Walton had also just opened Sam&#039;s Club. 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