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Upon Wal-Mart’s start up it was no different, but over the next decade they slowly took over theses specialty departments. By 1985, after some failure, Wal-Mart successfully ran over two-thirds of it’s specialty departments and licensee fees accounted for .2% of it’s discount sales verse the .4% of sales for the industry as a whole...
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This additional .2% was added on to Wal-Marts gross profits and also turned into additional discounts for its consumers, continuing to draw in the masses.
The final way that Wal-Mart constructed a superior cost structure was during the introduction of the UPC or uniform product code. The UPC was highly efficient and helpful, speeding up checkouts with out the paperwork while simplifying inventory tasks, and helping the reordering process...
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