Quick Note on Walmart's Success

Walmart originally started its operations in predominantly rural areas of the United States. The company's inaugural store was established in the small town of Roger’s, Arkansas. Walmart observed that customers were willing to travel long distances, such as 70 miles or more, to purchase items at significantly discounted prices, like lawn mowers. By offering a wide range of products to meet various needs, Walmart was able to attract customers from both nearby and distant locations.

Cost Savings through strong supplier relationships: In the early 1990s, deodorants were packaged in cardboard boxes. Walmart identified this as an unnecessary expense, as the additional packaging occupied valuable shelf space and increased transportation costs, making shipping more expensive. Consequently, Walmart proposed to deodorant suppliers that they sell their products without boxes. This initiative resulted in the retailer saving 5 cents on each deodorant sold.

Cutting-edge Technology: Prior to Hurricane Juan hitting Florida, Walmart's algorithm predicted a surge in demand for Kellogg’s Strawberry Pop-Tart Toaster pastries. The retailer's computer systems alerted distribution centers, ensuring that the products arrived in time for Florida families to stock up on Pop-Tarts before the storm struck.