Wal-Mart is the world’s retailer, employing more than 2 million associates worldwide, including more than 1.4 million in the United States. Wal-Mart has more than 7,870 stores, including about 890 discount stores, 2,970 combination discount and grocery stores (Wal-Mart Supercenters), and 600 warehouse stores (SAM’S CLUB). About 55% of its stores are in the United States but Wal-Mart continues expanding internationally; it is the retailer in Canada and Mexico, and it has operations in Asia, Europe, and South America. This company is constantly growing and opening new stores all over the world.
1. What business factors does Wal-Mart need to consider in deciding to launch a new Supercenter?
2. How can management accounting information be used to help plan, control, and evaluate the new store?