Who still owns Walmart?

Walmart is the largest retailer in the world and is still owned by the Walton family, the heirs of Walmart founder Sam Walton. Walmart was founded in 1962 by Sam Walton in Rogers, Arkansas. Walton opened the first Walmart discount store in Rogers in 1962. Walmart went public in 1970 and by 1980, Walmart reached $1 billion in annual sales. Sam Walton died in 1992 at age 74 and left his fortune to his wife and children. Today, Walmart operates over 11,000 stores worldwide and employs over 2 million associates. The company is still majority owned by the Walton family.

Who were the original Walmart owners?

Sam Walton was the original founder and owner of Walmart. In 1945, at age 27, Sam Walton purchased a Ben Franklin variety store franchise in Newport, Arkansas. This was Walton’s first retail venture. Over the next 17 years, Walton opened and owned a total of 15 Ben Franklin stores in Arkansas. However, Walton envisioned creating a new type of store – a discount retailer – that would offer brand name products at affordable prices. This led Walton to open the first Walmart in Rogers, Arkansas in 1962. Walton owned the company entirely in the early years. By 1970, the company had grown to 38 stores across Arkansas, Missouri, and Oklahoma, and Walmart went public that year. Though public, Walton maintained a controlling stake in the company until his death in 1992.

Who owns Walmart now?

The Walton family heirs own just over 50% of Walmart shares today. This gives them overarching control of the company. The three children of Sam Walton – Rob, Jim, and Alice (and Alice’s son John) – own about half of Walmart’s stock through their personal holdings and the Walton Family Holdings Trust. This stake is worth over $190 billion as of 2021. Other Walmart shareholders own the remaining stock shares. However, no single outside shareholder holds more than 6% of total shares. Therefore, the Walton family heirs remain firmly in control of Walmart as majority shareholders.

Breakdown of Current Walmart Ownership

  • Rob Walton (eldest son of Sam Walton): Owns about 14% of Walmart shares
  • Jim Walton (youngest son of Sam Walton): Owns about 14% of Walmart shares
  • Alice Walton (only daughter of Sam Walton): Owns about 14% of Walmart shares
  • John Walton (grandson of Sam Walton): Owns 6% of Walmart shares
  • Walton Family Holdings Trust: Owns about 33% of Walmart shares
  • Remaining shareholders (institutions and individuals): Own about 49% of shares

As the above breakdown shows, the Walton siblings and their families directly own or control about 50.4% of Walmart stock. This gives them control of the company while allowing outside investors to own a portion of the retailer.

How did the Walton family gain control?

The Walton family gained control of Walmart from its founder Sam Walton. Sam steadily purchased back equity in the company after taking it public in 1970. By 1982, Sam owned about 40% of Walmart. Upon his death in 1992, Sam’s ownership stake was divided among his wife and children, giving them control. Additionally, Sam placed a portion of his stake in the Walton Family Holdings Trust to prevent any one party from liquidating their shares. This trust now owns about one-third of total Walmart stock on behalf of the family.

Some key ways the Walton family gained control of Walmart stock:

  • Sam Walton steadily bought back company stock even after going public
  • Sam’s ownership stake went to his wife and children upon his death in 1992
  • A portion of the family’s shares are in the Walton Family Holdings Trust
  • The Waltons have not sold their sizable personal stakes

Through these measures over decades, the Walton family has maintained a controlling interest in Walmart since its founding.

Do the Waltons still run Walmart?

The Walton family heirs do not directly run Walmart’s operations today, though they do oversee the company through board positions. Here is the breakdown of the Walton family’s current involvement:

  • Rob Walton – eldest son of Sam Walton – was Chairman of the Board from 1992 to 2015. He remains on the board but retired as Chairman.
  • Jim Walton – youngest son of Sam Walton – is on the Walmart Board of Directors
  • Alice Walton – the only daughter of Sam Walton – does not have an active role
  • Steuart Walton – Sam’s grandson – joined the Walmart Board in 2016

So while the family does not actively manage Walmart, multiple heirs serve on the board to represent the interests of the controlling shareholders. The current Walmart CEO is Doug McMillon, who took over in 2014 after 23 years with the company.

Do the Waltons own anything else?

Yes, the Walton family owns significant stakes in other companies besides Walmart, including:

  • Arvest Bank – The family owns this regional bank based in Arkansas. Jim Walton is Chairman and CEO.
  • Hyatt Hotels – The family owns about 11% of Hyatt stock.
  • First Solar – The family owns a 6% stake in this solar panel company. Jim Walton is Chairman of the Board.
  • Privately-held companies – The Waltons have interests in dairy processing, loan servicing, and real estate.

Forbes estimates the total net worth of the Walton family at over $238 billion. So Walmart remains their crown jewel, but the heirs have diversified interests across corporate America and private ventures. According to Bloomberg, the Waltons collectively own over half of Walmart’s stock, around $100 billion of Coca-Cola shares, and billions worth in Chinese e-commerce giant JD.com.

How rich does owning Walmart make the Waltons?

Owning over half of Walmart has made the Waltons one of the richest families in the world. Here are some staggering facts about the Walton family’s wealth due to their Walmart stake:

  • The Waltons are the richest family in America with a net worth over $238 billion
  • Each Walton heir has a net worth ranging from $65 billion to over $80 billion
  • The Waltons wealth is equal to the total wealth of the bottom 40% of Americans
  • The Waltons earn about $100 million every day from dividends on their Walmart holdings

To put their wealth into perspective, the Waltons individually are richer than Warren Buffett, Bill Gates, and Jeff Bezos. Their cumulative wealth tops America’s top billionaires combined. The Walton heirs live very comfortably on their Walmart dividends, even though they are not actively involved in running the retail giant. As shareholders, they have benefited immensely from the success of the company Sam Walton founded.

Could the family ever lose control?

It is unlikely the Walton family will ever fully lose control of Walmart given the protections put in place by Sam Walton. However, there are a few scenarios where the family could lose outright majority control:

  • Family members steadily sell off large portions of their shares
  • No provisions are made to pass shares to heirs upon the deaths of the second generation
  • No new Walton family members join the Board of Directors
  • External shareholders or investors acquire larger stakes

Realistically, the family has taken steps to prevent these scenarios from happening. Their shares are tightly controlled in trust funds and not readily sold on the market. Ownership is spread across enough family members to withstand any single member selling out. Multiple heirs now serve on the Board, learning the business. And no outsider has been allowed to acquire more than a single-digit ownership stake.

Could ownership become diluted over generations?

It’s more likely ownership slowly becomes diluted over generations rather than a rapid loss of control. With each new generation of heirs, Walmart shares will be divided further and the Walton’s stake will decline bit by bit. This may gradually water down their holding from a majority to a influential minority stake.

For example, the six Walton heirs of Sam’s generation currently own about half the company. If that was split equally among just six of their children, it would drop them to around 25% ownership. Of course, steps can be taken to prevent excessive dilution such as limiting inheritance to select heirs. But some gradual dilution seems inevitable over decades. But given their formidable starting stake, the Waltons will likely wield influence at Walmart for generations to come unless control is actively relinquished.

Conclusion

Walmart remains firmly in the control of the heirs of founder Sam Walton. The Walton family owns over 50% of Walmart stock, split between Sam’s three children and their families. This holding is worth over $190 billion yet still pales in comparison to the total wealth of the Waltons. While not involved in day-to-day operations, multiple heirs serve on Walmart’s Board of Directors to represent the interests of the controlling shareholders. The Walton family ownership stake is not at risk of being lost anytime soon given the protective measures put in place by Sam Walton. However, some dilution of their stake is likely over generations as ownership is divided among more and more heirs. Even so, the immense wealth and power wielded by the Waltons thanks to their Walmart stake will continue to make them one of the most influential families in America for decades to come.

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