Food: Value Network Issues
Friday, June 10, 2016
Walmart sells more than Apple, Amazon and Microsoft, combined
None bigger.
(Reuters/Edgard Garrido)
In our future-obsessed, tech-frenzied world, it’s easy to forget the dominance of Walmart, the undisputed king of the
Fortune 500
.
Walmart isn’t a unicorn, and it’s no longer sexy. But it is massive. With $482 billion in revenue, it sells more than Apple, Amazon and Microsoft put together, according to Fortune’s annual ranking of companies by revenue, released yesterday (June 6). It’s bigger than the No. 2 company, Exxon Mobil, and No. 3, Apple, combined. Its sales are greater than the GDP of
Poland
.
While Silicon Valley entrepreneurs search for industries to disrupt, Walmart was the first disrupter and it did it with more ruthless success. Walmart became the world’s biggest retailer by annihilating Main Street–opening massive stores on the edges of small town America, and using its vast purchasing power to undersell the clothing, appliance and dry goods stores that were once the heart of local commerce. It now has 11,500 stores worldwide, and 260 million weekly customers.
As it swallowed up retail, it became one of the globe’s biggest employers. Walmart has more than 1.2 million workers in the US and 2.3 million globally. It’s the third largest employer in the world, trailing only the U.S. Department of Defense and the People’s Liberation Army of China,
according
to Forbes. The company doesn’t disclose its payroll, but to get a sense of its size, consider that it set aside $2.7 billion when it
pledged
to raise the wages of its employees to an average
yet still paltry, $13.38 an hour.
Much has been
written
about the destructive power of Walmart on small
towns and salary growth. Its obsession with low prices squeezes its
thousands of suppliers, who in turn hold down their wages. And the
low wages Walmart pays its associates force many of its employees to rely on public assistance, costing taxpayers an estimated $6.2 billion annually,
according
to Americ
ans for Tax Fairness.
Walmart is changing, slowly. It’s committed to improving its labor practices, and it’s gradually building its online presence. Good thing, because competition is coming: Amazon’s sales are growing at a record clip. The future of shopping may be online, with goods delivered via self-driving cars and drones.
But will be a long time before anyone topples the Walmart goliath.
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