Financial Structure of Walmart

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Financial structure and management fit with its overall financial strategy Walmart’s operations comprised of three segments: Walmart U.S. which includes all the company’s mass merchant concept in the U.S., International segment which consists of retail operations in 14 countries and Puerto Rico, while Sam’s Club segment includes the warehouse membership clubs in the U.S. The total sales of the company increasing yearly from year 2006 to 2010, due to their global store expansion programs, comparable store sales increases and acquisitions. Besides that, Walmart always double the amount they were spending on television advertising during the holiday season. The company has worked more than a year on improving inventory levels by hiring two firms – Acosta Inc. in the U.S. and Retail Insight in the U.K., to walk the aisles and monitor stocking levels. They believe in making better on product availability and inventory, the real risk that the customers take their basket elsewhere when there are items out of stock will be reduced. However, there are few factors which greatly affected the company’s total revenue. One of the factors is the continued store expansion activities. Each additional store may take away sales from the existing units. That’s why the Walmart management started to plan a slower new store growth, so that the impact of new stores on comparable store sales will be stabilizing over time. Walmart International includes numerous different formats of retail stores and restaurants that operate outside the United States. The volatility in currency exchange rates may impact the International segment’s net sales. For example, the net sales in fiscal 2009 increased due to their global expansion activities and comparable store sales increases. The figure is however offset by a $2.3 billion unfavorable currency exchange rate impact. Walmart is

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