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Professors Michael D. Kimbrough of Harvard Business School, Michael Faulkender of Washington University, Nicole Thorne Jenkins of
Vanderbilt University, and Research Associate Rachel Gordon, Global Research Group, prepared this case. HBS cases are developed solely as the
basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective
management.
Copyright © 2008, 2010 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-
7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical,
photocopying, recording, or otherwise—without the permission of Harvard Business School.
MICHAEL D. KIMBROUGH
MICHAEL FAULKENDER
NICOLE THORNE JENKINS
RACHEL GORDON
Walmart’s Use of Interest Rate Swaps
Company Background
The now-familiar story of Walmart’s emergence as a global behemoth began with the opening of
the first Walmart store by Sam Walton in 1962 in Rogers, Arkansas. Walmart’s success was due to a
disciplined adherence to the strategy of purchasing high volumes directly from manufacturers
combined with pioneering investments in information technology that allowed it to effectively
manage its supply chain and distribution networks. This strategy, when combined with Walton’s
lasting legacy of frugality and efficiency, allowed the company to sell at “every day low prices” to
consumers.
Walmart’s Growth Ambitions at the Turn of the Century
Although Walmart closed the twentieth century as the United States’ largest generator of sales
and the world’s...