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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Reader Comments (Page 1 of 1)
6-23-2008 @ 11:27AM
GL said...
What isn't told on the flip side is that the Walton family is very philanthropic. I know of one donation that was made that was for $500,000,000 to the University of Arkansas. This supposedly was the largest gift ever made to a public university.
6-23-2008 @ 2:24PM
Flo Ball said...
Wal;Mart imports tons of things from China...SO I rarely shop there
6-23-2008 @ 5:27PM
Mike said...
It is absolutely remarkable what Wal-Mart has done for Arkansas and especially Northwest Arkansas. It goes far beyond employment opportunities for residents. It has provided the citizens of NWA with attributes of far larger communities.
1. An airport served by 7 airlines flying to 15 nonstop destinations spanning the nation.
2. World-class shopping and dining
3. Broadway style theater at the Walton Arts Center
4. The arts - Crystal Bridges Art museum under construction
The list could go on and on.
I'm proud of NWA...and i'm proud of Wal-Mart for helping it become what it is today.
7-02-2008 @ 12:10AM
Jack said...
CHINA-mart!!!!!
6-26-2008 @ 7:27AM
Mike said...
Complete waste of bandwidth Jack?
6-27-2008 @ 9:19AM
SCchristianAFvet said...
walmart is a disgrace. They employee illegal aliens and have fired employees for exercising thier freedom of speech and religion. Thier stores are filthy and staffed by rude and unknowledgeable employees. The management is just as rude and uncaring. In the easley south carolina store on two seperate occassions an employee(one was a manager) push past my wife in her wheelchair. Each time the employee actually made physical contact with my wife. I complained and nothing was done. In May of 2008 an employee (John) pushed past my wife. I complained to the district manager(Rob Greene). It took two weeks to get a response to my calls. Mr Greene did nothing about the problem. walmart comes into town and wipes out small businesses. The company fights its assessed taxes. Always pushing for a reduction. The compnay should be closed down.
6-28-2008 @ 2:57PM
geoff groedner said...
It's made in China because the unions want their Birthday, Arbor Day, Groundhog Day and their cousin's brother-in-law's circumcision anniversary off.
7-29-2008 @ 3:39PM
Londa said...
Yes, let's definitely close down businesses based solely on occasions when employees are rude to customers. Yesterday, at the McDonald's in my hometown the employee was rude to me-----no almost hateful-----after I pointed out my order was not correct. (3 witnesses to verify my order and the employee's subsequent rudeness). So should that mean all McDonald's will close or just this one with the crummy employee? While it is furstrating when employees are rude to you as a customer, don't you see the absurdity of saying a store-----no an entire corporation---- should be closed because employees are rude. Now that you have complained and that didn't get their attention, you and your spouse should decide not to shop there. (Unless of course you need their products more than you need their polite, courteous behavior.) Corporations are in business to make money, so hit them in the pocketbook. You may say my business alone won't hurt them. True, but if employees at this particular Wal-Mart there have been exceptionally rude to you as you describe, they've also been discourteous to others. If all those people refuse to shop at that Wal-Mart, their bottom line will be affected.
By the way, I travel quite a bit. I haven't found Wal-Mart stores to be "filthy." It sounds like the manager at the Easley, North Caroline store might be at fault if most of the shoppers think it is "filthy and staffed by rude and unknowledgeable employees."
China-mart? Yes, Wal-Mart stocks and sells many products made overseas-----way more than I'd like to see, but can you say that that is different from most stores which carry a wide variety of general merchandise. My father has been a farmer for 50+ years, and he has harped over the years about "buying American" so I try.
Over the years as I've raised my family, I've frequently compared all the brands/prices of a
product I'm hoping to purchase. Often I haven't been able to find a US-made version of a particular product I'm seeking whether I look at Wal-Mart or other stores. I do acknowledge that if Wal-Mart and other large corporations demanded more
US-made products, maybe, just maybe, that would change a little.
8-29-2008 @ 1:38PM
rev.james f. matthews said...
I recently spoke to one of your record distribution co.about putting my gospel cd in your stores,and was turned down.This cd is very anointed and if distributed properly could become a big seller.I'am appealing to the CEO to review my project.The cd is entitled I'll Make It Somehow.I've dedicated this cd to my son James F. MatthewsII who was murdered in july,05 If you would distribute this cd in your stores it would be a blessing to my singing ministry as well as a memorial to my son.
sincerely,
Rev.jf mATTHEWS
8-29-2008 @ 1:28PM
rev.james f. matthews said...
To The CEO.
I recently sent you a message concerning my gospel cd.You can listen to some of the selections on myspace.com/rev.jfmatthewsmakeit
myspace.com/optimusentertainmentgroup
napster
itunes
imusic
and a number of other digital networks
Iwill send you a copy along with a bio if you will give me an address.
Thank You
Rev.JF Matthews