Sales in 2005 (billion $)

s porting goods , hobby,

cl othi ng and cl othi ng book, mus i c; 2.86%
acces s ories ; 7.05%
heal th a nd pers onal care; Genera l mercha ndi s e
7.29% store; 18.38%
furni ture, home
furni s hi ng,el ectroni c
appli a nces ; 7.40%
Food a nd bevera ges ;
bui l di ng materi al s and 18.15%
gardeni ng equi p; 11.43%

food s ervi ces and

dri nki ng pl aces ; 13.86%

ga s ol i ne; 13.57%

Genera l mercha ndi s e store Food a nd beverages

food s ervi ces a nd dri nki ng pl aces ga s ol i ne
bui l di ng materi al s and ga rdeni ng equi p furni ture, home furni s hi ng,el ectroni c appl i a nces
hea l th and pers ona l ca re cl othi ng and cl othi ng acces s ories
s porting goods , hobby, book, mus i c

By 2006
No. of stores worldwide 6500
No. of employee worldwide 1.8 million Segment
No. of employees in US 1.3 million general merchandise
Only 500,000 employees outside US Specialty Retailers
Department Store
Grocery Store

Employees in Logistics division 75000

Truck drivers 7800
No. of distribution centers 114
No. of cases processed per year 5 billion
Avg. distance btwn distribution center and stores 130 miles
Avg driving speed for trucks 65 miles
time taken to cover the distance 2 hours
 Category
General merchandise store
Food and beverages
food services and drinking places
gasoline
building materials and gardening equip
furniture, home furnishing,electronic appliances
health and personal care
clothing and clothing accessories
sporting goods, hobby, book, music

Total retail sales in US

1989

Retailer
Wal-mart
Kmart
Sears
No. of suppliers

c appl i a nces

In 2005
Competitors Sales from Private label
Sears, Target
Gap , Limited
Dillard, Federated, JC Penney
Kroger, Albertsons,Safeway
Sales in 2005 (billion $)
525.7
519.3
396.6
388.3
327
211.7
208.4
201.7
81.9

Distribution cost as a %age of

cost of sales
1.70%
3.50%
5%
90000

20% of sales
Analysis
Category Sales in 2005 (billion $)
General merchandise store 525.7
Food and beverages 519.3
food services and drinking places 396.6
gasoline 388.3
building materials and gardening equip 327
furniture, home furnishing,electronic applian 211.7
health and personal care 208.4
clothing and clothing accessories 201.7
sporting goods, hobby, book, music 81.9

General merchand
food s ervi ces and
bui l di ng materi al s
hea l th and person
s porting goods , ho
 Sales in 2005 (billion $)
cl othi ng a nd cl othi ng
a cces s ori es; 7.05%
hea l th a nd personal
care; 7.29%
furni ture, home
furni s hi ng,el ectroni c
a ppl i a nces ; 7.40%
bui l di ng materi al s and
ga rdening equi p;
11.43%
gas ol i ne; 13.57%
General merchandi s e store
food s ervi ces and dri nki ng pl aces
bui l di ng materi al s and gardeni ng equip
hea l th and personal ca re
s porting goods , hobby, book, mus ic
s porting goods , hobby,
book, mus i c; 2.86%
General merchandi s e
store; 18.38%
Food and bevera ges ;
18.15%
food s ervi ces and
dri nki ng pl a ces ;
13.86%
Food and bevera ges
gas ol i ne
furni ture, home furni s hi ng,el ectroni c a ppl i ances
cl othi ng and cl othi ng a cces s ori es