Is Walmart a Corporation in 2023? (All You Need to Know)
Yes, absolutely Walmart remains a massive global public corporation in 2023. It has been incorporated since 1969 and publicly traded on the NYSE for over 50 years.
As an experienced ecommerce seller, I‘ve watched Walmart grow into a retail juggernaut boasting over $500 billion in annual revenue.
In this comprehensive guide, I‘ll share insider expertise on Walmart‘s corporate status, ownership, operations, and tips for how savvy investors like you can buy into this dominant force in retail. Let‘s dive in!
A Primer on Corporations
Before looking specifically at Walmart, let‘s review exactly what a corporation is in business.
A corporation is a legal entity that‘s separate from its owners and shareholders. It can:
- Sell stock shares to raise investment capital
- Appoint a board of directors
- Keep operating even if original founders leave
In other words, a corporation has a perpetual existence beyond its initial leaders. It also offers limited liability protection for shareholders.
This differs from sole proprietorships or partnerships where individual owners share unlimited personal liability.
Public corporations like Walmart trade shares on open markets. This allows everyday investors to buy stock and benefit from gains.
The Evolution of Walmart‘s Corporation
Sam Walton opened the very first Walmart in 1962 as a single five-and-dime-store in Rogers, Arkansas.
Several years later, as the fledgling chain began to grow, Walton incorporated the business.
Specifically, on October 31, 1969, Wal-Mart Stores Inc. was officially incorporated in the state of Arkansas.
This established Walmart as a legal corporation separate from founder Sam Walton.
In 1970, Walmart offered its first shares of public stock on the NYSE to raise expansion capital. At the time, it was trading with a modest market cap of just $40 million.
Over the next five decades, Walmart experienced explosive growth through ambitious new store openings along with key acquisitions:
- 1983 – Opened first Sam‘s Club warehouse store
- 1988 – Acquired majority stake in Arkansas-based retailer McLane
- 1999 – Acquired UK supermarket chain Asda
- 2016 – Acquired ecommerce startup Jet.com for $3.3 billion
Today, Walmart operates over 10,500 retail stores globally across 24 countries.
For fiscal year 2022, Walmart reported massive revenue of $573 billion and net income of $13.5 billion.
It now boasts a market cap of $370 billion and employs a staggering 2.3 million associates worldwide.
To put Walmart‘s scale into perspective, here is how it compares to other giants:
Corporation | 2022 Revenue | Employees |
---|---|---|
Walmart | $573 billion | 2.3 million |
Amazon | $502 billion | 1.5 million |
Apple | $394 billion | 154,000 |
And on the Fortune 500 list, Walmart continues to rank #1 year after year.
Ownership Structure of Walmart
Despite its enormous size, Walmart continues to be controlled by the Walton family heirs:
- 50% owned by Walton family
- 30% owned by institutional investors
- 20% owned by individual shareholders
The Walton family owns their stake through two primary entities:
Walton Enterprises LLC – This private holding company manages a stake of over 1 billion shares.
Walton Family Holdings Trust – This entity holds around 400 million shares and helps maintain balance between family and non-family investors.
As you can see, the Walton billionaire clan retains firm control even as stock floats among public shareholders.
The key institutional investors include names like:
- Vanguard Group – 137.6 million shares
- BlackRock – 67.2 million shares
- State Street Global Advisors – 42.7 million shares
But regular folks like you and I also cumulatively own 20% of this retail powerhouse.
Next, let‘s explore why Walmart chose the corporation structure and how they leverage it effectively…
The Powerful Benefits of Being a Corporation
As a seasoned ecommerce seller, I understand firsthand how impactful it is to incorporate a business.
Corporations unlock crucial advantages including:
Raising Capital – Selling shares to public investors provides access to expansion funding.
For example, since 1970 Walmart has raised over $110 billion through stock offerings and reinvestments.
Limited Liability – Shareholders are not personally liable for company debts and lawsuits.
This protection incentivizes investors to buy shares and benefit from gains.
Perpetual Existence – The corporation can outlive founders like Sam Walton.
Walmart continues to thrive even decades after the passing of its original leader.
Economies of Scale – Massive bulk purchasing power and distribution efficiencies.
Walmart‘s sheer size enables supply chain and cost advantages that maximize profit margins.
These core strengths empower Walmart‘s ongoing dominance in retail. Leveraging corporate structure fueled its meteoric rise from humble beginnings into the retail titan it is today.
Why Walmart Won‘t Franchise Out
Given Walmart‘s global scale and brand recognition, some wonder why they don‘t franchise out stores like McDonald‘s or Subway.
The simple reason? Walmart gains no advantage from franchising and plenty of downsides:
Would lose control and oversight of store operations.
Less ability to leverage its enormous purchasing and distribution might.
Complex and risky to transition given established operations.
Unnecessary given its rock-solid financial performance as a corporation.
As a former franchise owner myself, I understand the many complexities and tradeoffs at play.
Walmart smartly concluded that franchising provides no real benefits commensurate with the costs and challenges involved.
The corporation structure offers them full control, operational efficiencies, and public share offerings for capital – a winning combination!
How Everyday Investors Can Buy Into Walmart
A common question I receive is, "How can individuals invest in or buy Walmart stock?"
While the Walton family holds a controlling stake, the remaining shares are publicly traded on the open market.
This allows any investor to buy a slice of this retail behemoth. Here are the primary options:
Stock Brokerages – Open an account with popular brokerages like Fidelity, eTrade or Charles Schwab. Then purchase Walmart shares through their trading platforms.
Investment Apps – User-friendly apps like Robinhood and Webull allow easy stock purchases right from your phone.
401k Plans – Many employer retirement plans offer Walmart stock in their available investment selections.
Index & Mutual Funds – Funds like Vanguard 500 contain Walmart holdings, providing indirect exposure.
Employee Stock Plans – Walmart associates can purchase company shares directly via payroll deductions.
I recommend regular, small investments over time to cost average into your position.
And be sure to diversify – don‘t put all your eggs in one basket!
Walmart‘s Ongoing Global Retail Dominance
A birds-eye view of Walmart‘s worldwide retail empire certainly reveals its sheer magnitude:
- Over 10,500 total stores across 24 countries
- Operations in Africa, Asia, Europe, and the Americas
- Massive ecommerce and online grocery operations
- Flipkart majority ownership in India – a key growth market
In the US alone, Walmart operates over 4,700 stores and 660 Sam‘s Club locations.
Impressively, amid inventory shortages, Walmart continued posting strong growth:
- Walmart US Q3 2022 Comp Sales – +8.2% Y/Y
- Sam‘s Club Q3 2022 Comp Sales – +10.1% Y/Y
- Walmart International Q3 2022 Comp Sales – +7.1% Y/Y
Rising inflationary pressures have also boosted Walmart‘s value positioning.
All indicators point to steady, sustainable growth for Walmart moving forward. Their global empire stands strong.
The Verdict: Walmart Remains a Dominant Public Corporation
In closing, I hope this comprehensive overview clarified Walmart‘s standing as a public corporation in 2023 and beyond.
Key takeaways:
- Incorporated in 1969, IPO in 1970, trades on NYSE
- Retains corporate structure for capital, scale, control
- Primarily owned by Walton family heirs
- Everyday investors can buy stock through brokerages
- Continues expanding its massive global retail footprint
As a proven long-term winner, Walmart‘s stock deserves consideration within a diversified investment portfolio.
I‘m confident its strategic corporate structure will power this retail juggernaut‘s success for decades to come!
Let me know if you have any other Walmart or investing questions. Happy to help provide insider knowledge and guidance.