Wal-Mart International Failure

WIESBADEN, Germany, July 31 — Three days after Wal-Mart Stores announced that it would pull out of Germany, Roland Kögel was wandering through the aisles of a somewhat threadbare Wal-Mart in a strip mall in this western German city.  Multimedia  {draw:a}  Related  Retail Chains Scramble to Enter Indian Market (August 2, 2006)  )  {draw:a}  Chung Sung-Jun/Getty Images  In South Korea, Wal-Mart had only 16 stores — a small presence that contributed to its decision in May to sell out to a Korean discount chain.  {text:bookmark-start} {text:bookmark-end} “Why are they giving up now?” he asked. “They have good prices and a good variety of products.”  Yet Mr. Kögel, 54, confessed that he never bought groceries at Wal-Mart. Food is cheaper at German discount chains. He also does not visit this store often, because it is on the edge of town and he does not own a car. His one purchase for the day was tucked under his arm: a neck pillow.  Shoppers like Roland Kögel help explain why Wal-Mart raised the white flag in Germany, the site of the company’s first foray into Europe.  After nearly a decade of trying, Wal-Mart never cracked the country — failing to become the all-in-one shopping destination for Germans that it is for so many millions of Americans. Wal-Mart’s problems are not limited to Germany. The retail giant has struggled in countries like South Korea and Japan as it discovered that its formula for success — low prices, zealous inventory control and a large array of merchandise — did not translate to markets with their own discount chains and shoppers with different habits.  Over all, Wal-Mart is still expanding outside the United States, particularly in markets where it entered by acquiring a strong retail ...
Word (s) : 1784
Pages (s) : 8
View (s) : 741
Rank : 0
   
Report this paper
Please login to view the full paper