Sam Walton

Samuel Moore Walton (March 29, 1918 – April 5, 1992) was the founder of the giant American retailer Wal-Mart.

Innovative practices

Walton went on to found another store in Fayetteville, Arkansas, about 20 miles south of Bentonville. This store shared the same name as the store in Bentonville, but was not a member of the Ben Franklin chain. It went on to become as successful as the original 5 & 10. Of this time, Walton said, "I did something I would do for the rest of my run in the retail business without any shame or embarrassment whatsoever: nose around other people's stores searching for good talent."

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His search turned up Willard Walker, a manager of a TG&Y variety store in Tulsa, Oklahoma. With Walker he did something else that is commonplace today, but was unusual for the time when he did it. Walton offered Walker a percentage of the store's profit, what today is known as profit sharing. Walton proceeded to visit the store once a week to handle any problems and reviewed the store's profit and loss statement once a month.

Related Topics:
Willard Walker - Tulsa, Oklahoma - Profit sharing

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About this time, Walton introduced the concept of check-out counters at one location in the store. Registers throughout the store were moved to one location near the exits. Customers could be rung up for all their purchases and pay for them at one time, instead of paying for several things at several locations. Walton also insisted that his stores be clean, well-lit, and on sharing profits with employees, increasing their loyalty.

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Over time, Walton went on to open more stores with the help of his brother, father-in-law, and brother-in-law. In 1954, he opened a store with his brother in a shopping center in Ruskin Heights, Kansas. He opened another in Arkansas, but it failed to be as successful as his other stores. Walton decided to concentrate on retail business instead of the shopping centers and opened larger stores which were called Walton's Family Center.

Related Topics:
1954 - Ruskin Heights - Kansas

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Walton offered managers the opportunity to become limited partners if they would invest in the store they oversaw and then invest a maximum of $1,000 in new outlets as they opened. This motivated the managers to always try to maximize profits and improve their managerial skills. By 1962, Walton and his brother Bud owned 16 variety stores in Arkansas, Missouri, and Kansas.

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