Sam Walton
Sam Walton, the founder of Sam’s Club and Wal-Mart,was born on March 29, 1918 in Kingfisher, Oklahoma. Walton’s childhood was not easy. He grew up the Great Depression, and his family was always looking for ways to make ends meet. In addition to going to school, young Sam milked cows and deliver milk and newspapers.
Walton graduated from at the University of Missouri-Columbia with a degree in economics. Right after graduation, he became a manager a manager at JC Penny in Des Moines, Iowa, only three days after graduation. When the US entered World War II, Sam got a job at a DuPont munitions factory. It was at this job that he met his future wife, Helen Robson. After their marriage in 1943, Sam joined Intelligence Corps, and was eventually commissioned as a captain.
After the war, Walton began planning to open a department store. Settling on opening a variety store, Sam secured a $20,000 loan from his father-in-law to open a Ben Franklin franchise store in Arkansas. It was during these years that Sam Walton devised the strategy of focusing on wanted a wide range of goods at discounted prices, and keeping his store open longer than his competitors, even during the Christmas season. His lower-price approach let him increase sales while negotiating lower prices from his wholesalers.
Sam Walton opened his own store, “Walton’s Five and Dime” in Bentonville, Arkansas. Sam continued his low price strategy at the new store, and his success led to the opening of more stores. In 1962, Walton opened up the first true Wal-Mart in Rogers, Arkansas. The business model he developed at Ben Franklin became the standard operating procedure for the new chain of stores.
In 1969, the company was incorporated, and opened its home office and first distribution center in Bentonville, Arkansas. Wal-Mart Stores, Inc. began being publicly traded, and was eventually listed on the New York Stock Exchange in 1972.
Walton introduced several innovative management initiatives that are now commonplace. After the company went public in 1970, Walton began a profit sharing plan, allowing employees to supplement their standard wages based on the profitability of the store. Employees were also offered stock options and store discounts. This profit sharing and other benefits plans reflected Sam Walton’s philosophy that “individuals don’t win, teams do”. Walton strongly believed making the employees’ success dependent on the company’s success, those employees would be far more motivated to work hard.
Sam Walton was very active in philanthropy, and founded the Walton Family Foundation. In 1992, Sam Walton was awarded the Presidential Medal of Freedom from George H. W. Bush in recognition of his innovative business model and his philanthropic efforts. Sam Walton also reached the ranks of the richest man in the U.S. From 1985 until 1988. Walton died on April 6, 1992, leaving his business to his wife and children.
To learn more about Sam Walton and his family, visit the following sites:
The Walton Family Foundation is a philanthropic organization founded by Sam Walton.
Sam Walton is featured on the Time 100.
Sam Walton’s daughter Alice Walton runs the Rocking W Ranch, a premier ranch dedicated to creating the finest cutting horses.
Alice Walton is also the founder of the Crystal Bridges Museum.