Good morning to all new and old readers! Here is your Saturday edition of Faster Than Normal, exploring the stories, ideas, and frameworks of the world’s most prolific people and companies—and how you can apply them to build businesses, wealth, and the most important asset of all: yourself. 

Today, we’re covering Walmart and its journey to global retail dominance.

If you enjoy this, feel free to forward along to a friend or colleague who might too. First time reading? Sign up here.

What you’ll learn:

Cheers,

Alex

P.S. Send me feedback on how we can improve. We want to be worthy of your time. I respond to every email.

Walmart's story is American capitalism at its most potent. It began in 1962 with Sam Walton, a man who understood the value of a dollar.

Walton grew up during the Great Depression. He milked cows and delivered newspapers to help his family make ends meet. These early experiences shaped his frugal mindset and work ethic.

After a stint in the Army and working at JC Penney, Walton opened his first store - a Ben Franklin franchise - in Newport, Arkansas in 1945. He was 27 years old.

Walton's key insight was that rural America was underserved by retailers. He saw an opportunity to bring low prices and a wide selection of goods to small towns.

In 1962, Walton opened the first Walmart store in Rogers, Arkansas. The concept was simple: offer lower prices than competitors by keeping costs low and selling in high volume.

But success didn't come easy. Walmart faced fierce competition from established retailers. Many suppliers were skeptical of Walton's low-price strategy.

"There is only one boss. The customer," Walton said. "And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."

This customer-first philosophy guided Walmart through its early struggles. By 1970, Walmart had 38 stores and $44.2 million in sales.

The company went public that year, which provided capital to fuel rapid expansion. Walmart grew from 276 stores in 1980 to 1,198 stores by 1990.

As Walmart expanded, it faced criticism for its impact on small businesses and labor practices. The company's size and influence became both an asset and a liability.

Walmart responded by investing in technology to improve efficiency and expanding into new areas like groceries. In 1988, the first Walmart Supercenter opened, combining general merchandise with a full grocery section.

"High expectations are the key to everything," Walton said of Walmart's constant drive to improve.

By the late 1990s, Walmart had become the largest retailer in the U.S. But the company faced a new challenge: the rise of e-commerce.

Initially slow to adapt to online retail, Walmart has since invested heavily in its digital capabilities. In 2016, it acquired Jet.com for $3.3 billion to boost its e-commerce operations.

Today, Walmart is the world's largest company by revenue, with $611.3 billion in sales in fiscal year 2023. It operates over 10,500 stores in 24 countries.

"We're all working together; that's the secret," Walton once said.

This collaborative spirit remains at the heart of Walmart's culture. The company continues to evolve, investing in areas like healthcare and financial services.

Walmart's journey from a single discount store to a global retail giant is a testament to the power of a simple idea - executed relentlessly. Low prices. Always.

It's a story of American entrepreneurship. Of seeing opportunity where others didn't. Of constantly adapting to serve customers better.

Sam Walton passed away in 1992. But his legacy lives on in every Walmart store. In every customer who saves money. In every associate who greets shoppers with a smile.

That's the real Walmart story. Not just rags-to-riches. But a company that changed retail forever.

Lesson 1: Obsess over your competitors. Sam Walton was known for his relentless study of the competition. He'd visit rival stores, taking notes and even measuring their shelf space. "Go in and check our competition. Check everyone who is our competition. And don't look for the bad. Look for the good," Walton said. This wasn't just casual observation. It was a core part of Walmart's strategy. They'd learn from others' successes, then improve on them. It's easy to dismiss competitors. Harder to learn from them. But that's often where the real insights are.

Lesson 2: Make your employees owners. Walmart gave stock options to its employees early on. Not just executives. Everyone. "The more you share profits with your associates - whether it's in salaries or incentives or bonuses or stock discounts - the more profit will accrue to the company," Walton explained. This wasn't just feel-good HR. It aligned incentives. When employees own part of the business, they act like owners. They care more. Work harder. It's a powerful force multiplier.

Lesson 3: Create a culture of frugality. Walmart's cost-cutting wasn't just about low prices. It was a company-wide obsession. Walton famously flew coach and stayed in budget motels. "Control your expenses better than your competition. This is where you can always find the competitive advantage," he insisted. This wasn't penny-pinching. It was about prioritizing what mattered. Every dollar saved was a dollar that could be invested in growth. Or passed on to customers.

Lesson 4: Experiment constantly. Walmart was always trying new things. New store formats. New product lines. New technologies. "You can't just keep doing what works one time, everything around you is changing. To succeed, stay out in front of change," Walton advised. This wasn't reckless. It was calculated risk-taking. They'd test ideas in a few stores. Scale what worked. Quickly abandon what didn't.

Lesson 5: Keep it simple. Walmart's business model was straightforward. Buy in bulk. Sell at low prices. Repeat. "There is only one boss. The customer," Walton stated. This simplicity wasn't a limitation. It was a strength. It allowed them to focus on execution. To do one thing better than anyone else. Sometimes the most powerful strategies are the simplest ones.

That’s all for today, folks. As always, please give me your feedback. Which section is your favourite? What do you want to see more or less of? Other suggestions? Please let me know.

Have a wonderful rest of week, all.

Why Faster Than Normal? Our mission is to be a friend to the ambitious, a mentor to the becoming, and a partner to the bold. We achieve this by sharing the stories, ideas, and frameworks of the world's most prolific people and companies—and how you can apply them to build businesses, wealth, and the most important asset of all: yourself.

Faster Than Normal is a ‘state' of being’ rather than an outcome. Outlier performance requires continuous, compounded improvement. We’re your partner on this journey.

Send us your feedback and help us continuously improve our content and achieve our mission. We want to hear from you and respond to everyone.

Interested in reaching Founders, Operators, and Investors like you? To become a Faster Than Normal partner, apply here.

Bald Labs Inc. [email protected]
fasterthannormal.co