The core of Walmart’s profitability rests on a high-volume, low-price strategy. This approach attracts a vast customer base, leading to substantial revenue generation. The company’s financial success stems from selling a wide variety of goods at competitive prices, incentivizing consumers to make frequent purchases across diverse product categories.
Maintaining a lean operational structure and exerting considerable influence over its supply chain are crucial elements of its sustained profitability. These factors enable the company to minimize costs, thereby offering lower prices to consumers. This business model has proven remarkably effective, building customer loyalty and creating a formidable competitive advantage over several decades.