Dominant market position; Substantial economies of scale; and Strong franchise. Participation in a highly competitive industry; and 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 $312 billion in annual sales ($210 billion in the U.S. Wal-Mart stores division) dwarfs those of its key competitors. Through its supercenter format combining a discount store and supermarket, Wal-Mart is rapidly gaining market share in food. In 2005, Wal-Mart's U.S. grocery sales in its supercenters were estimated at $78
