Walmart History 1950-1990

Summary

The script narrates the history of Walmart, starting from Sam Walton's first 5&10 store in Bentonville, Arkansas, in 1950, to the growth and expansion of the company through the decades. It highlights the challenges faced, such as initial skepticism from suppliers, and the innovative strategies that led to Walmart becoming the nation's top retailer. The summary also touches on the international expansion, the introduction of Super Centers, and the development of its own distribution centers to reduce costs, culminating in Walmart's status as a global retail giant.

Takeaways

• 🕰️ The script describes the post-war optimism of the late 1940s and early 1950s, setting the stage for the Walton family's entrepreneurial journey.
• 🛍️ Sam and Helen Walton opened the first Walton 5 and 10, a Ben Franklin franchise, in Bentonville, Arkansas, in 1950, marking the beginning of the Walmart story.
• 🏪 Sam Walton's success with the Ben Franklin franchise in Newport, Arkansas, led to the purchase of the Bentonville store and the expansion of the Walton's retail ventures.
• 📈 By 1959, the Walton family owned nine franchise stores, demonstrating their business acumen and the potential for growth in the retail sector.
• 🛒 In 1962, Sam Walton opened the first Walmart Discount Store in Rogers, Arkansas, which was a significant step towards establishing a new retail model.
• 🚫 Sam's initial proposal to the Ben Franklin offices for discounted merchandise for a rural discount store was rejected, but he remained undeterred.
• 🛍️ The opening of the second Walmart in Harrison, Arkansas, in 1964 was not without its challenges, as humorously recalled by David Glass.
• 📈 The script highlights the relentless pursuit of improvement and innovation within Walmart, which contributed to its success and growth.
• 📊 The 1970s were a decade of significant growth for Walmart, including its listing on the New York Stock Exchange and the expansion of its distribution centers.
• 🏆 In 1979, Walmart achieved its first billion-dollar year, marking a major milestone in its corporate history.
• 🌐 The 1980s saw Walmart expanding nationally and internationally, with the acquisition of Big K stores and the opening of its first Sam's Wholesale Club.
• 🛰️ Technological advancements, such as the private satellite communication system in 1987, played a key role in Walmart's operational efficiency and growth.
• 🏆 Sam Walton was awarded the Medal of Freedom, the nation's highest civilian honor, in 1992, recognizing his contributions to American retail and entrepreneurship.
• 🌟 Despite the loss of its founder, Walmart continued to thrive under new leadership, expanding internationally and pioneering the Walmart Super Center concept.
• 🛒 The Walmart Super Center model, combining groceries with general merchandise, became a key driver of the company's growth in the 1990s and beyond.

Q & A

What was the economic climate in America during the late 40s and early 50s?

The economic climate in America during the late 40s and early 50s was full of hope as the economy shifted from a military emphasis to one that was consumer-driven, making people feel that anything was possible.

Where and when did Sam and Helen Walton open their first store?

Sam and Helen Walton opened their first store in Bentonville, Arkansas, in 1950. It was a Ben Franklin franchise named Walton 5 and 10.

How did Sam Walton initially enter the retail business?

Sam Walton initially entered the retail business by purchasing Luther Harrison's Variety Store in Bentonville, Arkansas, and turning it into a Ben Franklin franchise after successfully operating another Ben Franklin franchise in Newport, Arkansas, for five years.

What challenge did Sam Walton face when he wanted to open discount stores in rural communities?

Sam Walton faced resistance from the Ben Franklin offices, which did not see a future in his idea of opening discount stores in rural communities and could not offer him merchandise at lower prices.

What was significant about the opening of the first Walmart store in 1962?

The first Walmart store opened in Rogers, Arkansas, in 1962, was significant because it marked the beginning of Sam Walton's venture into large discount stores. It was less than one-tenth the size of today's average Walmart and had only 25 employees.

How did Walmart expand during the 1970s?

During the 1970s, Walmart expanded significantly by being listed on the New York Stock Exchange in 1972, growing its distribution centers, and reaching a milestone of $1 billion in sales by 1979.

What was a key innovation Walmart implemented in the 1980s?

A key innovation implemented by Walmart in the 1980s was the completion of the largest private satellite communication system in the US in 1987, linking all operating units with the general office.

How did Sam Walton's death impact Walmart?

Sam Walton's death in 1992 did not have a devastating effect on Walmart as predicted by many. His eldest son, Rob Walton, became chairman of the board, and David Glass continued as CEO, leading to the company's greatest growth yet.

When did Walmart become an international company, and how?

Walmart became an international company in 1991 by opening a store in Mexico City through a joint venture with Cifra, now called Walmart de Mexico.

What is the Walmart Supercenter concept, and when was it introduced?

The Walmart Supercenter concept, introduced in the 1990s, combined a supermarket and a Walmart store into one, offering fresh produce, meat, seafood, deli items, canned goods, and general merchandise in one convenient shopping venue.

Outlines

00:00

🛍️ The Birth of Walmart

In the late 1940s and early 1950s, post-war America was filled with hope and optimism. During this time, Sam and Helen Walton purchased Luther Harrison's Variety Store in Bentonville, Arkansas, opening the first Walton 5 and 10, a Ben Franklin franchise, in 1950. Sam's success in Newport, Arkansas, led him to Bentonville, where he opened this store, which was followed by Bud Walton opening his own Ben Franklin store in Missouri. By 1959, Sam and Bud owned nine franchise stores. In 1962, Sam launched the first Walmart in Rogers, Arkansas, a store much smaller than today's Walmarts with only 25 employees. Sam's vision of discount stores in rural areas was initially dismissed by Ben Franklin's offices in Chicago. However, undeterred, Sam opened his second Walmart in Harrison, Arkansas, in 1964. Despite a rocky start with unique promotions like watermelons and donkey rides, which didn't go as planned, Sam's persistence led to continuous improvement. By the late 1960s, Walmart proved that offering low prices daily could be profitable in rural America.

05:01

📈 Decades of Growth and Innovation

The 1970s marked a significant growth period for Walmart. In 1972, Walmart was listed on the New York Stock Exchange. By the end of the decade, the company had expanded its distribution centers significantly, and its employees, called Associates, benefited from generous profit-sharing plans. In 1979, Walmart celebrated its first billion-dollar year. The 1980s saw accelerated expansion with the acquisition of 91 Big K stores, pushing Walmart towards national prominence. In 1984, after achieving a record 8% pre-tax profit, Sam Walton famously performed a hula on Wall Street. The decade was also notable for technological advancements, including the completion of the largest private satellite communication system in the U.S. In 1983, Walmart introduced Sam's Wholesale Club, and in 1987, it opened its first combination grocery and general merchandise store, Hypermart USA. Throughout these years, Walmart cultivated a culture of innovation and continuous improvement.

Keywords

💡Post-war economy

The post-war economy refers to the period following World War II when the economy shifted from a military emphasis to a consumer-driven focus. This transition is crucial in understanding the optimism and growth in Bentonville, where Sam Walton opened his first store. The video highlights how this economic shift fostered a sense of hope and possibility among Americans.

💡Bentonville

Bentonville is a city in Northwest Arkansas where Sam and Helen Walton opened their first Walton 5 and 10 store. This location is significant as it marks the beginning of the Walmart legacy. The video traces the roots of Walmart back to this small community, underscoring its importance in the company's history.

💡Ben Franklin franchise

The Ben Franklin franchise was a chain of variety stores where Sam Walton first gained retail experience. Sam operated a Ben Franklin store in Newport, Arkansas, before opening his own store in Bentonville. This franchise is pivotal in the narrative as it provided the foundation for Sam Walton's retail ventures.

💡Discount store

A discount store offers goods at lower prices than traditional retail stores. Sam Walton's innovative idea to open discount stores in rural communities was initially met with skepticism but ultimately proved successful. The video describes the challenges and eventual triumph of this concept, starting with the first Walmart in Rogers, Arkansas.

💡Expansion

Expansion refers to Walmart's growth from a single store to a national and international retail giant. The video details key milestones in Walmart's expansion, including the opening of multiple stores, the listing on the New York Stock Exchange, and the development of distribution centers. This concept illustrates Walmart's journey to becoming a leading retailer.

💡Sam Walton

Sam Walton was the founder of Walmart, whose vision and business acumen drove the company's success. The video highlights his innovative ideas, determination, and impact on retail. Key moments include his acquisition of the Bentonville store, the opening of the first Walmart, and his recognition with the Medal of Freedom.

💡Rural communities

Rural communities are small, often less populated areas where Sam Walton saw untapped potential for retail business. The video emphasizes how Walmart's strategy of serving these areas with discount stores defied conventional wisdom and led to the company's success. This focus on rural markets distinguished Walmart from other retailers.

💡Innovation

Innovation in the context of Walmart refers to the company's continuous improvement and adoption of new ideas and technologies. The video mentions several innovations, such as the development of Sam's Wholesale Club, the creation of Walmart Supercenters, and the implementation of a private satellite communication system. These innovations played a crucial role in Walmart's growth.

💡Profit sharing

Profit sharing is a system where employees receive a share of the company's profits, fostering a sense of ownership and motivation. Walmart's generous profit-sharing plan is highlighted in the video as a factor contributing to the company's success. This system encouraged employees, referred to as 'associates,' to invest in the company's growth.

💡Globalization

Globalization in Walmart's context refers to the company's expansion beyond the United States. The video describes Walmart's entry into international markets, starting with a store in Mexico City and expanding to over 1,200 international locations. This global reach helped solidify Walmart's position as a leading international retailer.

Highlights

Post-war economic shift in the late 40s and early 50s led to a consumer-driven economy and a sense of hope among Americans.

Sam and Helen Walton opened the first Walton 5 and 10, a Ben Franklin franchise, in Bentonville, Arkansas, in 1950.

Sam Walton's successful operation of a Ben Franklin franchise in Newport, Arkansas, for 5 years before opening in Bentonville.

Bud Walton opened his own Ben Franklin in Versailles, Missouri, and by 1959, the Walton family owned nine franchise stores.

Sam Walton's vision for discount stores in small rural communities led to the opening of the first Walmart in Rogers, Arkansas, in 1962.

Walmart's initial discount store faced skepticism from Ben Franklin offices but Sam Walton persisted with his vision.

The opening of the second Walmart in Harrison, Arkansas, in 1964 was marred by humorous challenges with watermelons and donkeys.

Walmart's continuous improvement ethos was evident from its early days, as noted by David Glass.

The 1970s marked significant growth for Walmart, including its listing on the New York Stock Exchange in 1972.

Walmart's expansion in the 80s included the purchase of 91 Big K stores and the development of new technologies and concepts.

Sam Walton's hoola hoop performance on Wall Street in 1984 symbolized the company's record 8% pre-tax profit.

Walmart's innovative spirit in the 80s included the establishment of Sam's Wholesale Club and the Hypermart USA concept.

Walmart's culture of encouraging associates to be their best and the tradition of Saturday morning meetings fostered a supportive environment.

The 1990s saw Walmart become the nation's top retailer, surpassing Sears, and being recognized for American ingenuity.

Sam Walton was awarded the Medal of Freedom, the nation's highest civilian honor, by President Bush in 1992.

Walmart's international expansion began in 1991 with the opening of a store in Mexico City, leading to over 1200 international locations.

The introduction of Walmart Super Centers, combining groceries and general merchandise, became a key driver of the company's growth.

Walmart's development of its own distribution centers for supplying groceries to Super Centers helped drive down costs.

Transcripts

[Music]

it was in the late 40s and early 50s

that the people of Arkansas like most

Americans in those post-war years were

full of Hope and as the economy shifted

from a military emphasis to one that was

consumer-driven the feeling was anything

was possible

it was in this Northwest Arkansas

Community of Bentonville that Sam and

Helen Walton purchased Luther Harrison's

Variety Store and demonstrated their

confidence in the future and in the

people of this

area it was

1950 and they opened the first Walton 5

and 10 a Ben Franklin franchise with the

Walton name Sam had purchased the

Bentonville store after operating this

Ben Franklin franchise in Newport

Arkansas

he and Helen had been there for 5 years

and they were quite successful so

successful in fact that the man who

leased it to them wanted it back during

the same time Bud Walton had opened his

own Ben Franklin in versales Missouri by

1959 Bud Sam and their families owned

nine franchise

stores in

1962 after becoming Ben Franklin's

largest franchisee Sam opened his first

large Discount Store under the Walmart

name in Rogers Arkansas it was less than

1/ the size of today's average Walmart

and had only 25 employees its volume and

promising future LED Sam to make a trip

to the Ben Franklin offices in Chicago

he went there with an idea Don

soderquist then a data processing

officer for Ben Franklin recalls Sam's

visit his purpose was to share with him

them this idea that he had of taking a a

discount store and putting it in a small

rural community he said I've already

opened a store in Rogers Arkansas that I

would consider a discount store and I'm

convinced that there's a lot more

business in those smaller communities

than what most people believe so I would

like you to consider selling me

merchandise for a discount store at a

lower price so that we can together uh

try this new Venture of serving the

rural communities with discount stores

well after a morning of discussion they

told him they just really didn't see a

future and and besides that they

couldn't offer him merchandise at a

lower price than what they were selling

to the Ben Franklin

franchises undeterred Sam continued to

pursue his vision and two years later in

1964 he opened his second Walmart in

Harrison Arkansas it was anything but a

smooth opening here's how David glass

then president of a drug retailing chain

remembers the store upon his first visit

uh when I saw the Harrison Arkansas

store uh I I thought to myself this is

this is absolutely the worst discount

store or retail store that I've ever

seen uh Sam bought a couple of

truckloads of watermelons and he'd

stacked them up across the front of the

store uh he had donkey rides for the

kids out on the parking lot and what he

didn't anticipate is that the

temperature was about 110° in Harrison

that day and the Watermelons began to

pop and that watermelon juice began to

run over the parking lot and the donkeys

did what donkeys do and uh and sort of

tracked through all that you can imagine

what it looked like the thing I didn't

realize about Sam though and the people

who were involved in those early days in

Walmart is that they had a quality that

I haven't seen in many people or in many

companies and that was that there was

never a day went by that they didn't

improve something and improve Walmart

did within another 5 years Sam and his

associates had proved the doubters wrong

a Discounter who truly offered the

consumer the Assurance of low prices

every day could be profitable in Rural

[Music]

America the 70s can be called the decade

of growth in

1972 Walmart was listed on the New York

Stock Exchange this initial 100 share

certificate would after 82 for one split

represent at the end of 1989

25,600 shares worth well over $1

million the 70s saw Walmart grow in many

ways from its first 60,000 ft

Distribution Center in Bentonville to

four centers with combined space of 1

and2 million square ft and 3500

employees at that time became Associates

sharing in one of the most generous

profit sharing plans in American

Business and capping the decade a

milestone was reached in

1979 with the celebration of Walmart's

first billion dooll

year the80s ushered in a new accelerated

era of expansion for Walmart with the

purchase of 91 Big K stores located

primarily in the Southeast Walmart took

a major step in becoming a national

Discounter and in 1984 when Walmart

achieved a record 8% pre-tax profit Sam

Walton made good on his promise to

Associates and performed a hoola on Wall

[Music]

Street the 80s were also a decade

characterized by new Concepts bold

Innovations and the use of new

technology and above all a desire to

experiment in 1987 the company completed

the largest private satellite

communication system in the US which

linked all operating units of the

company with the general office in 1983

the highly successful Sam's Wholesale

Club was developed a No Frills members

only Cash and Carry Wholesale

Club in 1987 in Garland Texas Walmart

opened its first combination Grocery and

General Merchandise store Hypermart USA

Walmart has succeeded by creating a

climate where Associates are encouraged

to be their best the Saturday morning

meetings a tradition that began in the

early Ben Franklin days continued to

Rally support for new ways of doing

things ideas flow upward from the

associates and managers to those at the

general office and positive

reinforcement is always the rule

with each passing year in its history

Walmart perhaps like no other company

has undergone dramatic change the 9s

were no exception always open to

Innovation the company continued to

experiment with new ideas and in doing

so Walmart became the nation's top

retailer surpassing even Sears and was

recognized as an icon of American

Ingenuity on March 17th 1992 then

President Bush traveled to Walmart

headquarters ERS in Bentonville and

awarded Sam Walton the medal of freedom

the nation's highest civilian honor

though weak with cancer Sam proudly

stood and accepted the award for the

humble founder of the world's leading

retail Enterprise it was a momentous

occasion he had less than a month to

enjoy the

honor on April 5th 1992 Sam passed away

at age 74 he left an indelible

impression on those who worked with him

though many predicted the loss of its

charismatic leader would have a

devastating effect on the company

Walmart once again proved the critics

wrong eldest son Rob Walton became

chairman of the board and David glass

continued on as CEO and in the years

that followed the retailer witnessed its

greatest growth yet in 1991 Walmart

became an international company with the

opening of a store in Mexico City the

operation was a joint venture with cifra

now called Walmart de Mexico in the

Years following that first across the

border Endeavor The company took its

everyday low prices concept around the

globe and Walmart International was

created Walmart can now be found in more

than 1200 International location while

Walmart was expanding around the globe

it was also pursuing new Endeavors at

home the company tested A New Concept

the first supermarket and a Walmart

store allinone this new store became

known as the Walmart Super Center the

concept took off and in a few short

years super centers became the key to

the company's

growth Super Center Shoppers enjoy fresh

produce meat seafood and Deli items as

well as canned goods and general

merchandise in one convenient shopping

venue Walmart developed super centers

around the country and internationally

and in 2001 celebrated the opening of

its 1,000th domestic Super Center in

1990 Walmart discovered another

opportunity to drive cost even lower by

handling the supply of groceries to its

super centers with the development of

its own distribution centers Walmart was

able to order in larger quantities at