Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Walmart Stores Inc. (Walmart) is the world’s largest public corporation by revenue, according to the Fortune Global 500 ranking. Walmart serves customers and club members more than 200 million times per week at more than 8,000 retail units under 53 different banners in 15 countries. The company operates in three business segments: Walmart U.S. and Sam’s Club in the United States, and Walmart International in 14 countries and Puerto Rico.

The brand value of Walmart fell by $5,145m in 2011 to $36,220m. At the same time, enterprise value has fallen to $239,634m. Nonetheless. Walmart maintains it's AA brand rating. In such uncertain economic times, its constant emphasis on offering value to its consumers has resulted in buoyant sales, thereby repositioning itself as a consumer champion.

The company continues to dominate the US retail landscape, providing employment to more than two million people. It is also developing a laudable reputation for corporate philanthropy and is pioneering sustainable practices across its supply chain. The company’s management is also focused on building up its online proposition. Walmart’s CEO Raul Vazuqez is quoted as saying: ‘Our goal is to be the biggest and most visited retail Web site’. 

In uncertain economic times when conscious consumption is expected to continue, consumers prefer shopping at supermarkets and retailers they trust. Looking at the recent sweatshop scandals involving Walmart, consumers may lose trust, resulting in lower brand loyalty and consequently a lower brand value. This may be a reason for its drop to rank three in 2011 after being the world’s most valuable brand in 2010 (Brand Finance® Global 500).

On the other hand, consumers highly value retailers who engage in green activism. Therefore, if Walmart manages to reinforce its ethical standards as well as to keep up its commitment towards the environment and local communities, there is a good chance that Walmart will at least keep its current brand rating and that the retailer will again increase its brand value for 2012.

Positive Aspects

With its strong sustainability management, Walmart aims at increasing its efficiency while pursuing various environmental goals such as creating zero waste, being supplied 100 percent by renewable energy and by selling products that sustain both people and the environment.

Walmart’s efforts have been recognised through various awards, such as the “Corporate Environmental Excellence” for Walmart Canada from the International GLOBE Foundation in 2011 and the 2010 “Gold Medal for International Corporate Achievement in Sustainable Development” from the World Environment Center. 

Walmart provides financial and volunteer support to more than 100,000 charitable and community-focused organisations, following the philosophy of “operating globally and giving back locally”.

The Walmart Foundation strives to provide opportunities that improve the lives of individuals through financial contributions, in-kind donations and volunteerism. With its Hunger Relief program, Walmart and the Walmart Foundation have committed $2 billion cash and in-kind to help end hunger in America.

Further, after the Japan earthquake and tsunami in 2011, the retailer has made an initial commitment of $5 million in cash and in-kind donations for emergency relief efforts. Walmart’s active contributions to communities around the globe resulted in numerous awards such as the “Donor of the Year” by Feeding America in 2010 or being one of five finalists for the “Corporate Stewardship” award in 2010.

Walmart follows a strong diversity management by making diversity part of its business plan.

In 2003, Walmart established its Global Office of Diversity, focusing on fostering a high-performance culture based on inclusion. The retailer implements initiatives to attract and retain a diverse workforce by recruiting from colleges and universities with large multicultural populations, as well as through providing associates with on-the-job training and leadership seminars.

With Walmart’s new brand positioning including the launch of a new logo in June 2008, the retailer now aims at appearing more environmental friendly and technology savvy, reflecting the corporation’s increased focus on sustainability. 

 

Negative Aspects

In 2009, Walmart was involved in a child labour scandal in the US after children as young as five were found working on a farm that supplied blueberries to the company.

However, Walmart immediately stopped sourcing blueberries from this company after the issue was detected.

In 2010/2011, Walmart has been accused of paying female employees less than males for the same job.

Although the retailer published a statement of ethics outlining the company always aims at maintaining high workforce diversity and that they will not tolerate discrimination on the basis of sex, race etc., female workers also had to wait longer to be promoted than their male colleagues.

In 2010, Walmart was repeatedly listed in the Sweatshop Hall of Shame published by the International Labour Rights Forum.

On its website, Walmart published its vision of its Ethical Standards Program, aiming at strengthening the implementation of positive labour and environmental practices in its factories abroad through adhering to its Standards for Suppliers. Over the last few years, however, Walmart came under increased pressure being accused of releasing misleading reports on its labour conditions and of major labour rights violations in its factories located in Indonesia, China, Bangladesh, Nicaragua and Swaziland.

Through the foundation of the Sweatshop, Warehouse, Walmart Worker True Tour, former Walmart workers get the chance to report about the retailer’s labour violations, specifically dealing with forced overtime, verbal and physical abuse and low wages. The retailer has not only to bear the actual costs of these accusations, but rather has to fear the loss of its image among customers.

 

 

Last changed September 1, 2011

League tables

Walmart appears in the following brand league tables:

Rank 3 in the Global 500 2011.
Rank 1 in the Global 500 2010.
Rank 1 in the Global 500 2009.
Rank 4 in the Global 500 2008.
Rank 4 in the Global 250 2007.