Table Of ContentSAM
WALTON
Founder of the Walmart Empire
ESSENTIAL LIVES
BY KATHERINE KRIEG
SAM
WALTON
Founder of the Walmart Empire
SAM
WALTON
Founder of the Walmart Empire
BY KATHERINE KRIEG
CONTENT CONSULTANT
ART CARDEN
ASSISTANT PROFESSOR OF ECONOMICS
BROCK SCHOOL OF BUSINESS,
SAMFORD UNIVERSITY, BIRMINGHAM, ALABAMA
CREDITS
Published by ABDO Publishing Company, PO Box 398166, Minneapolis, MN 55439.
Copyright © 2014 by Abdo Consulting Group, Inc. International copyrights reserved
in all countries. No part of this book may be reproduced in any form without written
permission from the publisher. The Essential Library™ is a trademark and logo of ABDO
Publishing Company.
Printed in the United States of America,
North Mankato, Minnesota
052013
092013
Editor: Susan E. Hamen
Series Designer: Becky Daum
Photo credits: Luke Frazza/AFP/Getty Images, cover, 2; Bettmann/Corbis/AP Images,
6, 95; Getty Images, 11; Seth Poppel/Yearbook Library, 14, 20; Carol Highsmith/
Library of Congress, 25; Denver Post/Getty Images, 26; Mike Wintroath/AP Images,
31; Gilles Mingasson/Getty Images, 32, 34, 44, 65, 86; Zac Lehr/AP Images, 38; Kathy
deWitt/Alamy Images, 42; April L. Brown/AP Images, 52; Danny Johnston/AP Images,
55, 76; John Mcgrail/Time Life Pictures/Getty Images, 56; Rob Nelson/Time Life
Pictures/Getty Images, 66; Rick Scuteri/AP Images, 71; Michael L. Abramson/Time
Life Pictures/Getty Images, 73; J Pat Carter/AP Images, 80; Jeff Greenberg/Alamy, 83;
Dennis MacDonald/Getty Images, 84; Shutterstock Images, 89
Library of Congress Control Number: 2013932967
Cataloging-in-Publication Data
Krieg, Katherine.
Sam Walton : founder of the Walmart empire / Katherine Krieg.
p. cm. -- (Essential lives)
ISBN 978-1-61783-898-9
Includes bibliographical references and index.
1. Walton, Sam, 1918-1992--Juvenile literature. 2. Wal-Mart (Firm)--History--Juvenile
literature. 3. Business people--United States--Biography--Juvenile literature. 4.
Millionaires--United States--Biography--Juvenile literature. 5. Discount houses (Retail
trade)--United States--History--Juvenile literature. I. Title.
381/.149/092--dc23
[B] 2013932967
CONTENTS
CHAPTER 1
A NEW OPPORTUNITY 6
CHAPTER 2
SOUTHERN UPBRINGING 14
CHAPTER 3
J. C. PENNEY AND
WORLD WAR II 26
CHAPTER 4
A SECOND TRY 34
CHAPTER 5
WALMART EXPANDS 44
CHAPTER 6
GROWTH STRATEGY 56
CHAPTER 7
NEW ENTERPRISES,
NEW CHALLENGES 66
CHAPTER 8
LATER YEARS 76
CHAPTER 9
LEAVING A LEGACY 84
Timeline 96
Essential Facts 100
Glossary 102
Additional Resources 104
Source Notes 106
Index 110
About the Author 112
About the Consultant 112
CHAPTER
ONE
A NEW
OPPORTUNITY
I
n 1945, Sam Walton was just a young man with a
dream. That year, Walton purchased a Ben Franklin
franchise in the small town of Newport, Arkansas.
Walton was only 27 years old, but he had high hopes for
the store and his career. He also had the determination
to succeed. At this point in his life, Walton knew he
had a future in retail. However, he had a few lessons to
learn, and they would not come easily.
Ben Franklin Store
Walton paid $25,000 for his Ben Franklin franchise.
Only $5,000 was money he had saved. The other
$20,000 he borrowed from his father-in-law, who was
very supportive of the endeavor. Walton also had to
pay 5 percent of the store’s sales to his landlord for
renting the store’s building.1 Walton later found out this
Sam Walton, future multibillionaire and cofounder of Walmart, endured
early struggles with competitors before finding success. 7
was a much higher rent than
A SMALL- most store owners in his area
TOWN START
were paying.
Before moving to Newport, But in many ways, Walton’s
Walton had a chance to
first retail management attempt
buy a Federated Department
Store, another chain owned
was extremely successful.
by Butler Brothers, in Saint
Louis, Missouri. Walton was Ben Franklin was a franchise
excited about the idea, but
operated by Butler Brothers, a
his wife, Helen, changed his
mind. Helen did not want to regional retailer. Ben Franklin
live in a big city. She and
stores were variety stores
Walton had already moved
16 times in just the two years
located across the country that
they had been married.
Helen was willing to put up sold a mix of household goods
with moving as long as her
at discounted prices. As a
husband did not ask her to
live in a large city. Newport franchise, the store was owned
only had approximately
7,000 people. It was the by Walton with the support of
perfect place for the couple
Butler Brothers. In other words,
to start out.
Walton was allowed to use the
brand name “Ben Franklin” and
processes for running the store that were established
by Butler Brothers. Butler Brothers gave Walton the
information he needed to run the store, including
products he could buy from Butler Brothers’ suppliers
and the prices he should offer customers.
8 (cid:135) ESSENTIAL LIVES
