Each year every man, woman, and child in America spends an average of $360 in a Wal-Mart store. Today, Wal-Mart is the world's largest retailer with more than 4000 stores. Along the way, Wal-Mart has redefined the retail industry and reshaped the way people shop in thousands of communities across the U.S. and the world. The company's main Wal-Mart discount stores have been joined recently by an increasing number of Sam's Club warehouse stores and Supercenters, which combine traditional discount wares with groceries.

Big and bad?

Because it can purchase its inventory in large quantities and then efficiently move the goods to the shelves with its top-notch inventory system, Wal-Mart affects every town it inhabits. The company also stocks many of its shelves with the private-label packaged food products it has been manufacturing since 1993. These advantages - and the public's desire for cheap, plentiful products - have led to the criticism that Wal-Mart leaves the lifeless shells of mom-and-pop stores in its wake. These complaints, on occasion, have even prompted local authorities to block the authorization of Wal-Mart stores in their neighborhoods.

The brothers Walton

Sam Walton and his brother James Bud Walton opened the first Wal-Mart Discount City in 1962 in Rogers, Arkansas. The Waltons had 18 stores by 1970. During the two decades that followed, the company exploded with its automated distribution centers and inventory system. These two developments enabled the company to keep stores better stocked at lower prices. Now, the company is looking for foreign consumers who are ready to enjoy the pleasures of bulk discounts. Wal-Mart began a joint venture with CIFRA, Mexico's largest retailer, in 1992; since then, it has opened 460 stores in Mexico. After eight years south of the border, Wal-Mart is currently leading the Mexican retail industry. With 236 stores in the U.K. and 166 in Canada, and numerous locations in South America, Asia, and the rest of Europe, Wal-Mart is bringing the joy of cheap shopping to the world.

Scandal

In October 1998, Wal-Mart filed a suit against Amazon.com, accusing the online bookseller of luring away employees from Wal-Mart's IS department and stealing trade secrets. Among those workers hired away from Wal-Mart were Richard Dalzell, a vice president at Wal-Mart, who became Chief Information Officer at Amazon. The suit, originally filed in Arkansas, was dismissed on procedural grounds in January, but Wal-Mart officials immediately refiled in Seattle. Amazon then filed a countersuit accusing Wal-Mart of slander, defamation and libel. The suit was finally settled in April 1999. The terms of the agreement called for Amazon and Drugstore.com to reassign former Wal-Mart executives and consultants to positions that do not involve their knowledge of Wal-Mart's computer merchandising system. In addition, Amazon agreed to return informational materials from Wal-Mart that the former employees brought with them. No money was exchanged in the settlement because Amazon maintains its innocence.

Wal-Mart's legal troubles did not end there, as the company has been inundated with lawsuits ranging from sexual harrasment suits to charges of insufficient security. A number of cases are still pending in several states.

Everything from floor mops to stereos

Meanwhile, in January 1999, the company promoted H. Lee Scott from his position running Wal-Mart discount stores and supercenters to vice chairman/COO of Wal-Mart Stores, Inc. He then succeeded David Glass as CEO. Scott is credited with arranging the company's "hub-and-spoke" distribution system - which ensures that distribution centers in the U.S. are no more than one day's drive away from stores. He was also instrumental in the creation of Wal-Mart's 500 supercenters - 200,000 square-foot shopping cathedrals that sell everything from floor mops and stereos to eyeglasses and motor oil. The company plans to open 150 of these stores a year. Wal-Mart will also introduce a line of smaller grocery stores called Neighborhood Markets.

Bringing Internet access to the rest of America