How did Sam Walton go from the Army to Walmart?

Sam Walton. Army intelligence captain in World War II who opened a single variety store in 1945, lost it, started over, and built Walmart into the world’s largest retailer.

In the military

1942 to 1945, U.S. Army Intelligence Corps; rose to captain. Kept stateside (a heart condition kept him out of combat); supervised security at aircraft plants and served at Fort Douglas, Salt Lake City, Utah.

The transition

• Left the Army in 1945 at age 26 and bought a Ben Franklin variety-store franchise in Newport, Arkansas, financed with a $20,000 loan from his father-in-law and $5,000 of his own Army savings.
• Had never run a variety store and later admitted the store he bought ‘was a real dog’ with very high rent; it opened Sept 1, 1945.
• Grew the Newport store into the top Ben Franklin in the region, but after 5 years the landlord refused to renew the lease (there was no renewal clause) so he could give the store to his son; Walton sold out for about $50,000.
• Started over in Bentonville, Arkansas, opening Walton’s Five and Dime on May 9, 1950.
• Opened the first Wal-Mart Discount City in Rogers, Arkansas, on July 2, 1962, 17 years after leaving the Army, at age 44.
• Returned to Newport in 1969 with Wal-Mart store No. 18, 19 years after being pushed out of town.

What came next

• Founded Walmart (1962) and Sam’s Club; at his death in 1992 the company had 1,735 Walmart stores, 212 Sam’s Clubs and 13 Supercenters, with about $50 billion in annual sales.
• Grew from 190 stores in 1977 to 800 stores in 1985.
• Received the Presidential Medal of Freedom from President George H. W. Bush in March 1992, a month before he died on April 5, 1992.
• Wrote the autobiography Made in America: My Story (1992).

In Walton’s own words

“I felt sick to my stomach. I couldn’t believe it was happening to me. It really was like a nightmare.” (Made in America)

“If we work together, we’ll lower the cost of living for everyone... we’ll give the world an opportunity to see what it’s like to save and have a better life.” (Acceptance remarks for the Presidential Medal)

Lessons for your own transition

• Your first civilian venture may fail for reasons outside your control; Walton lost a thriving store to a bad lease and built a bigger one 5 years later. Read the fine print, then keep going.
• Lack of industry experience is fixable: Walton had never run a store and learned by studying competitors and copying what worked.
• Big success can take time; Walmart opened 17 years after he left the Army.

More veterans who made the leap

See them all, and practical steps for leaving after a long career: How do I transition from the military to civilian work after 30 years?.