Walmart And Transformation Of Retailing Industry


Retailing refers to the process of selling goods to the consumers in individual units or in lot many numbers arranged in a space easily accessible to the consumers. It is an extremely competitive field as there are a number of businesses involved in. The competition is based on price but the fact that the significance of the non-price form of competition cannot be ignored. It depends upon the retailers to choose from selling goods in bulk by having large space to display the items and sell a variety of goods or choose a small space and focus on a single line of products.


This paper focuses on Walmart, Inc. which is an American retail store was one of the world’s biggest retailers and among the world’s largest corporation. The company is headquartered in Bentonville, Arkansas.

Walmart was founded by Sam Walton in 1962. Its early growth was focused in rural areas, which helped him avoid competition with other retailers. As the company grew, it developed new strategies, including Sam’s Club discount warehouses and Walmart Supercentres. Emphasis on customer attention, control on costs and efficiency in the distribution of goods are the key drivers that helped Walmart become the largest retailer in the United States.

Limitations of Traditional Approaches in Studying Retail Location

To better understand this scenario, looking at the modern advancements in the retail industry will help derive the limitations of traditional approaches. The modern trends in the retail industry give consumers more power through access to information and lower costs. Several companies configured to operate in the scale-based, efficiency-driven models of the 20th century are now struggling to create value in the rapidly changing world.

Advancement in Technology

The significant advancements in the cost and performance of digital technologies have led to sophisticated innovations and other technologies that employ the digital infrastructure, and relieve the many traditional methods of approach between retail industry and technologies.

Public Policy Liberalization

In the course of recent decades, open approaches have comprehensively inclined toward liberating the development of individuals, capital, and different assets crosswise over geographic and political limits, making it for the most part simpler for people to begin and scale organizations. The structures and guidelines of explicit ventures have now and again quickened, and in others deferred, the impacts are ready to spread over the economy, to some degree as new organizations from different businesses infringe on conventional industry region. The move has influenced the retail segment in four primary ways:

  1. Diminished boundaries to showcase section are getting all players.
  2. Expanded access to market request is rising above geographic vicinity.
  3. On-demand fulfillment is lessening the requirement for retailers to hold stock.
  4. New advancements and client connections are opening up better approaches for making esteem.

Together, these progressions are putting weight on existing retailers while opening up new space in which non-conventional participants can work. They are additionally expanding open doors over the retail scene and diminishing the dimension of venture expected to seek after them.

Forces Driving the Globalization of Retail Activity and Manipulation of Retail Spaces

The effect of Walmart over America's way of life alone has been tremendous. Walmart is a wellspring of globalization in America yet in addition in every one of the nations in which it has a part. The ranges of influence of Walmart are financial, societal and political. Walmart, itself likewise needs to work in a similar situation it has made for itself which thusly fortifies globalization. Walmart for sure is 'a powerful image of the monetary and social effect that globalization can have on the national, network and individual characters '. Any place Walmart is found, be it the suburbs to urban America, towns, urban communities or nations, all have encountered social and monetary changes and quickened the pace of globalization that Walmart carries with its activities. Walmart creates an entirely different environment with its tasks, which isn't just about the lower costs and the huge volume of items that it sells, yet in addition about business sectors, inclinations, financial aspects, work, providers, teammates, foundation and so on. The techniques received by Walmart which were fuelled by the drivers of globalization altered the worldwide retail industry, made Walmart what it is today, an undisputed market pioneer in the retail business. Sam Walton's techniques for Wal-Mart incorporate:

  1. Locating stores in towns of under 25,000 individuals, where minimal extensive retail rivalry existed
  2. Extensive utilization of data innovations to connection to producers and lessen appropriation costs.
  3. Locating stores in closeness to its appropriation focuses and Bentonville, AK base camp.
  4. Saturating the provincial markdown retail showcase inside a nearby range to its conveyance focuses before opening new distribution centers.
  5. Entering metropolitan and rural markets situated in discouraged, low salary zones with minimal effort, promptly accessible land.
  6. Targeting low to center workers as its shopper base, bringing about the division of the client advertise so as to keep away from rivalry with administration arranged retailers.

In this manner, Walmart, on one side is an image of financial advancement, yet on the opposite side, it is additionally a power that in-channels the monetary, social and political ideas of the general population where Walmart is located. Monetary globalization and advances in data innovation are at the essence of Walmart's coordination and production network which has changed the retail business. Walmart has been fruitful in changing the idea of haggling power that it appreciates over its providers and producers. Walmart additionally depends on worldwide obtainment as a premise of its cost-effectiveness. Globalization encourages direct buy of merchandise from any place they can be secured from around the globe, where they can acquire the least costs and best quality.

Growing Tendencies for the Recentralization of Retailing

Location is a key factor, as it impacts clients in the method for how they go out to shop, and providers, how would they carry the items into the store. Walmart has a culture of keeping its stores in close proximity with its own another store so that the cost of transportation of goods need not be divided between stores. It is said that Walmart utilizes financial matters of thickness. It implies that the coordination procedure pursued is to have a thick stores system to make it simpler and faster to convey the items. Examining the development of the new openings of the firm, unmistakably an emanating framework has been executed. The reason of this framework is that the retailer applies the system of ‘just in time’. Having every one of the stores close found, numerous expenses can be decreased and quicker dispatching will be conceivable.

As of now, Walmart has 4,205 stores among the U.S. domain and 6,119 International stores. The firm works in a sum of 10,957 stores in 27 nations under 71 banners. From an examination made by the Federal Reserve Bank of Minneapolis in 2006, we realize that the median distance to a Walmart in the United States is 4.2 miles. For those zones of the nation with under 5,000 individuals inside a five-mile range, the median distance to a Walmart is 14.3 miles. It implies that the nearest place where any American native can go out on the town to shop is Walmart. Another significant thing worth to make reference to is that the areas favored by Walmart to open another store place near interstates where it is simple for trucks to arrive, yet in addition for clients. Likewise, having stores close to each other encourages trading.

The fundamental objective of Walmart is to give customers quality items at the most reduced value conceivable while as yet being beneficial and having an exceptional yield in speculation. To have the option to do that, the retailer must most likely work at a lower cost than its rivals by illustration upon an extremely proficient operational administration. So as to accomplish that objective, when Walmart enters another district, it manufactures another circulation focus in a focal area. After, new stores are opened around it so as to save money on conveying issues. Likewise, it makes the organization to open new stores at a little extra expense.


The retail scene today is amidst what is ostensibly its most key change in a century-long series of changes. Various huge scale elements are molded and more the extensive condition in which retailers were working, more the weight on change in conventional plans of action. To endure and flourish in this condition, retailers should reassess how they create value, changing their benefit blend to concentrate on the jobs they played. Times of vulnerability can offer enormous possibilities for those ready to pick a bearing and grab the chance. By driving change at business edges, retailers can model and test new plans of actions, accumulate significant input, and learn and reflect with less inner strain and obstruction.


  1. (2015). Walmart Annual Report. Effects of Globalization on Walmart. (2016, December 5). Retrieved from UK ESSAYS:
  2. John Hagel III, J. S. (n.d.). THE RETAIL TRANSFORMATION. Marcilla, L. B. (2014). Business Analysis of Walmart.
  3. Retailing. (2019, June 17). Retrieved from Encyclopedia Britannica:
09 March 2021
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