Dominant market position Substantial economies of scale Strong franchise Participation in a highly competitive industry Less profitable international operations The superior credit profile of Wal-Mart Stores Inc. reflects the company's leading market positions in the supercenter, discount department store, and warehouse club businesses; excellent geographic diversity; a long record of high sales and earnings growth; and strong returns on capital. Wal-Mart is the largest retailer in the U.S.; its $285 billion in sales ($192 billion in the U.S. Wal-Mart stores division) dwarfs its key competitors'. Through its supercenter format, combining a discount store and supermarket, the company is rapidly gaining market share in food. For 2004, Wal-Mart's grocery sales approximated $67 billion ($84 billion including pharmacy). This level exceeds the
