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  • The Walton family of Walmart is so rich that their combined wealth of nearly $150 billion

  • dollars is greater than the wealth of the bottom 40% of Americans. And it’s no surprise

  • why: Walmart is the largest publicly-traded employer in the world. So, how did the company

  • get so profitable? Just how powerful is Walmart?

  • Well, Walmart started out in the 1940s as a small variety store, run by businessman

  • Sam Walton. He named his franchiseWalton’s Five and Dime”, and later launched his own

  • separate company, Walmart, in 1962. In 1970, it was made public, and during the 80s and

  • 90s, the regional giant became a national giant. Over the past 53 years, Walmart has

  • flourished from a single store in Arkansas, to more than 11,000 stores across 27 countries.

  • Walmart employs 2.2 million associates globally. If Walmart were its own country, they would

  • have the 27th largest economy in the world, taking in more money than Austria in GDP.

  • So what made the stores so successful? Well, Sam Walton is said to have utilized several

  • smart business techniques early on, which have now become common practice for retail

  • stores. Walmart bought products in bulk that allowed them to sell items for cheap. Walmart

  • also relies on sales-by-volume, instead of just profits made from high-price markups.

  • With a variety of cheap products, Walmart appeals to a wide customer base. In recent

  • years, they have also shown quick adaptability to consumer concerns, creatingmade in

  • Americacampaigns, andeco-friendlywalmart brands, to satisfy anxiety about the

  • loss of American manufacturing jobs and sustainability. Walmart also doesn’t pay high wages, and

  • doesn’t offer many health benefits to workers, to keep their overhead costs to a minimum.

  • As a result, Walmart’s huge profits are concentrated on the top tiers of walmart executives.

  • But these practices have brought Walmart some controversy. Many smaller businesses stage

  • protests when a new Walmart store is scheduled to come to their town, because it brings so

  • much competition. The stores have been accused of usingpredatory pricingto intentionally

  • drive other businesses out of the area. They have also been at the heart of many labor

  • lawsuits, due to low wages paid to employees and Walmart’s strict anti-union stance.

  • How influential is Walmart? Well, on the ForbesFortune 500 listof world’s largest

  • companies per revenue, Walmart ranked NUMBER 1, beating out Exxon Mobil and Chevron. And

  • since 1998, Open Secrets reports that Walmart and affiliates have spent over $64 million

  • dollars on political lobbying - mostly favoring Republicans. To many, this is unsurprising

  • given that Republicans have more often voted in favor of corporate interests - with increased

  • tax cuts and no raises for minimum wage.

  • The global director of Deloitte (DEh-loit) Research saysThere's nothing like Wal-Mart,

  • They are so much bigger than any retailer has ever been, that it's not possible to compare."

  • Certainly they are the most powerful retail chain in the United States, and they have

  • a huge amount of economic and political clout to wield in their favor.

  • When Americans talk about walmart, one of the things that usually comes up is the minimum

  • wage. Should it be raised? Check out our video here. Thanks for watching TestTube News, please remember to

  • subscribe!

The Walton family of Walmart is so rich that their combined wealth of nearly $150 billion

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How Powerful Is Walmart?

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    羅紹桀 posted on 2015/07/14
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