Walmart

From Small to Gigantic

After World War II, a new type of consumerism emerged in American society. Products did more than fulfill functions; they enhanced people’s way of life. When Walmart opened for business in 1962, several factors were actively contributing to the rise of the American customer, including access to higher education, a nationwide embrace of consumer credit, the advent of television as an advertising medium, and new technologies for preparing and storing food.

Sam Walton, Walmart’s founder, began with a small store in Bentonville, Arkansas. He realized that national retailers neglected US small towns and rural areas to sell in densely populated suburbs. The company’s original tactic was to provide underserved markets with an array of national brands at lower prices. By 1990, Walmart had become the largest retailer in the US, outperforming Sears and Kmart in the “fast-moving consumer goods” industry. Walton’s formula still serves Walmart well: It offers customers the products they want at affordable prices.

Walmart fulfills its promise of “Everyday Low Prices” (EDLP) and its motto, “We sell for less...always,” by pursuing efficiency, using cutting...