Growth of Wal-Mart

According to the article "BUILT TO LAST: A STOCK FOR THE FUTURE" (1999), Wal-Mart Stores Inc. acquired the British Asda Group P.L.C. for $10.7 billion in December of 1999. At the time, The Asda Group was Britain's third-largest supermarket chain. Wal-Mart executives were quoted as saying that the acquisition will strengthen Wal-Mart's European business and provide synergies and growth opportunities. According to the article, some institutional investors were at first nervous about the purchase price. Although Wal-Mart's stock closed higher for the year, the stock did not record the type of record increases in value that investors had begun to hope for year after year. Despite misgivings about the purchase price paid for the Asda Group, most analysts remain convinced Wal-Mart will continue to grow and deliver 15% earnings per share growth. A spokesman for the company said that it is important to remember that international growth combined with domestic super center expansion are seen as the primary drivers of Wal-Mart's revenue and profit growth ("BUILT TO LAST: A STOCK FOR THE FUTURE," 1999, 86).

The acquisition would be classified as a success. Wal-Mart remains the world's largest retailer, with sales exceeding the combined sales of the second, third and fourth largest retailers in the world. Wal-Mart has built its business by offering customers quality merchandise at low prices. The company's relentless focus on productivity improvements, on acquisitions and other r

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Category: Business - G