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Saturday, October 16, 2021

Sam Walton the success story of founding Wal-Mart

An American businessman who lived through the Great Depression, and like other people of that era, tried to help his family to mitigate the effects of this global catastrophe. He first worked in milking his family’s cows, bottling the resulting milk, and then delivering it to customers.

Sam Moore Walton was born on March 29, 1918, in Kingfisher, Oklahoma; His father, Thomas Gibson Walton, was a farmer, and his father’s business later turned into a farmer’s mortgage; Where agriculture is no longer able to provide for the money he and his family needs; Sam’s childhood had a lot of ups and downs.

His family moved frequently; Until I settled in Colombia, Missouri, life held many surprises for the young child.

Sam Walton was a diligent student; Until he reached the eighth grade, he became the youngest child to receive an Eagle Scout in the history of the Boy Scouts of America. Nevertheless, the “Great Depression” – during which he grew up – gave him different skills, which helped him enter the job market.

Sam worked in several occupations; To help his family; He started selling magazines and delivering newspapers, in addition to routine household chores. He also worked on packing cow’s milk and selling it to customers.

He attended David Hickman High School in Colombia, where he earned the nickname “The Versatile Boy” upon his graduation in 1936. He then joined the University of Missouri as a cadet in the Reserve Officer Training Corps (ROTC). During his studies at the university, he became a member of the famous QEBH secret society and graduated from the university in 1940 with a BA in economics.

Sam Moore Walton was born in Oklahoma, USA, in March 1918, and Walton is one of the products of the Great Recession of the 1930s, and he graduated from the University of Missouri in 1940.

Walton began working in retail with JC Penney in Oiwa as a trainee, with a monthly salary of $ 85 and spent the period between 1938 and 1942. After joining the Army and ending his military service, in 1945 Walton used his savings along with a $ 25,000 loan to buy Ben Franklin’s shop in Newport, Arkansas, where his brother joined him. In 1950, when the owner of the property in which Walton had leased him refused to renew the lease, Walton moved to Petonville in the same state.

Walton ably managed Ben Franklin’s stores from 1945 to 1962, when the number of his stores in 1962 reached nine stores, so this year he participated in establishing a retail store that later became the largest and most successful retail chain in the United States of America. And this store was called Wal-Mart. The story of Walmart’s opening stems from Sam Walton’s conviction at this time that the best way to achieve a boom in his retail business is to open discount stores; He studied chain stores such as K-Mart and Zayer stores and then submitted a proposal to the Ben Franklin store management to launch a store based on discounts. When management was not interested in his proposal, Walton and his younger brother, James, opened the first Walmart.

Walton has followed a good policy in accommodating clients’ requests; So he made sure to set up Wal-Mart stores near the warehouses that contain all the goods, in order to be able to deliver the goods to customers on the same day.

Although he is not targeting people who do not prefer everything that is cheap, he has managed to achieve success after success by targeting the classes that seek to squeeze their expenses. In addition, Walton has been buying directly from the factory rather than from wholesalers and has adhered to a policy and program imposed on himself under the slogan of buying everything American.

The result was that his stores had an annual growth rate of 35% for a decade, which is three times the overall retail industry. If we assume that there is an investor who owns 100 shares in Walmart stores worth 1650 dollars in 1970, the value of his shares may reach 700 thousand dollars at 1987 prices. Therefore, Sam Walton was able to achieve large profits until he became one of the richest men in the world.

Wal-Mart stores continued to grow until, in 1990, their number reached 1,000 branches, employing more than 150,000 employees.

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