What Does Walmart (WMT) Do?

Walmart Inc. is an American multinational company that grew from a small discount store opened by Sam Walton in Rogers, Arkansas in 1962 into the world's largest retailer and private-sector employer. The "Everyday Low Price" (EDLP) motto and supply-chain excellence have been the foundations of Walmart's more than half-century of market leadership.

What Is It and How Did It Come About?

Sam Walton's core thesis was simple: acquire enough purchasing power to make low prices possible, then pass that savings on to customers. Walmart went public in the 1970s, expanded from rural to urban markets in the 1980s–2000s, and then moved into international markets. In the 2000s it added Sam's Club (membership-based wholesale) and international subsidiaries such as Asda (UK) and Flipkart (India) to its portfolio.

Today Walmart accounts for approximately 25% of U.S. retail sales on its own.

What Does It Do?

Walmart's business model revolves around three main segments:

Grocery is the largest revenue category in the U.S. Walmart's e-commerce growth (Walmart.com + Walmart+) has accelerated in recent years, positioning it as a significant competitor against Amazon.

Walmart's global operations map — U.S. Supercenter, Sam's Club, and international store density with revenue breakdown

Why Does It Matter?

• Scale: As of 2024, Walmart employs more than 1.6 million people worldwide, making it the world's largest private-sector employer.
• Inflation indicator: Walmart's sales and pricing are closely monitored by analysts to measure consumer trends and the impact of inflation on low-to-middle income segments.
• Supply-chain strength: Walmart runs one of the most efficient operations in the industry, built on long-term, power-balanced supplier relationships and a proprietary logistics network.
• Advertising segment: Walmart Connect (retail media) has become a fast-growing revenue source competing with Amazon Advertising.

How is WMT traded?

The underlying (WMT) trades on its own market during that market's session hours.

WMT price and technical analysis →

Risks

• Amazon competition: Amazon's growth rate in e-commerce and logistics forces Walmart to continuously increase its digital transformation investment.
• Margin pressure: Operating on a "low price" promise, Walmart works with relatively thin retail margins; wage increases or logistics cost increases directly affect profitability.
• International currency risk: Operations in 18 countries create exposure to exchange-rate fluctuations.

COINOTAG Perspective

Walmart can be described as the "thermometer of the consumer economy": the spending power of low-to-middle income groups is directly reflected in Walmart's revenue. The company is accelerating its transition to e-commerce and retail media while maintaining its scale advantage in traditional retail. The intensifying competition with Amazon positions Walmart simultaneously as a defensively-oriented large-scale retailer and as a dynamic platform company investing in technology. Critical variables: the U.S. consumer confidence index, Walmart+ membership growth, and Flipkart's performance in the Indian market.