Big company, small town: Wal-Mart, Bentonville, Arkansas


This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

You probably wouldn't think that the world's largest public corporation is located in a small town with a population of just 29,538 (based on the 2005 Census), but Wal-Mart Stores Inc. (NYSE: WMT) maintains its corporate headquarters in such a town -- Bentonville, Arkansas. Sam Walton opened his first store there in the mid-1940s -- Walton's Five and Dime -- on Main Street as a Ben Franklin franchise. Today that store is Wal-Mart's visitors' center where you can find thousands of company photographs and memorabilia.

Sam Walton's first Wal-Mart Discount City store opened in 1962 in Rogers, Arkansas, and within five years Walton had 24 stores in various towns in Arkansas. In 1968 he opened his first stores outside Arkansas, in Missouri and Oklahoma. Walton incorporated Wal-Mart Stores in 1969 and started selling shares over-the-counter in 1970. The company was first listed on the New York Stock Exchange in 1972. Today Wal-Mart has more than 6,700 stores worldwide and serves more than 176 million customers weekly.

Wal-Mart is not known for helping small towns. In fact when Wal-Mart arrives in a small town, many existing mom-and-pop stores go out of business in 6 to 12 months. Numerous studies have been done regarding this phenomena and the general conclusion is that store owners who learn to adapt to the changes in the retail market for the community can survive after Wal-Mart arrives. They can't compete head-on though. They must focus on customer service and other services that their customers won't find at the local Wal-Mart.

Wal-Mart also isn't known for its generosity. It does give away about 2% of its $12.7 billion net profit ,or $29.6 million, but Wal-Mart is often criticized for not giving more to the communities it serves. In Bentonville, the biggest recipient is the Bentonville Library Foundation, to which Wal-Mart has given more than $1 million. Other local recipients include the Bentonville Bella Vista Trailblazers Association, the Rogers Little Theater, Walton Arts Center, and the Helen Walton Child Development Center.

Lita Epstein has written more than 20 books, including Trading for Dummies and Reading Financial Reports for Dummies.

Be sure to check out more Big Company, Small Town posts.

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