Wal-Mart and its Market Structure

In a world where most retailers are categorized as having a monopolistic competition market structure, Wal-Mart Stores Inc. appears to have an oligopoly market structure. Nevertheless, because there are far too many retailers to deal with, then they also have a monopolistic competition market structure. Regardless, Wal-Mart would rather have it this way because it has not hurt them at all by having competition. When Wal-Mart Stores Inc. opened its doors to their first discount …

…predicted to be the leading grocer and retailer in the nation. At the end of 1996, Wal-Mart Supercenters had a 62% share of total supercenter sales. The sales for 1996 totaled $17.78 billion, up from the $11.51 billion for the previous year. These numbers, and Wal-Mart's other numbers continue to grow year after year, and at this rate it may be hard to maintain a monopolistic competition market structure. They may have no choice but to consider themselves an oligopoly.