Wal-Mart Admits German Defeat

[Mr. Big Dog 10,747]

Wooo-Hooo: The Arkansas Suckers have been beaten!

RETAIL GIANT HUMBLED

Wal-Mart Admits German Defeat

By Anne Seith

The American discount chain Wal-Mart is a worldwide phenomenon -- but in Germany it has been an embarassing flop. All 85 of its stores will be sold to Metro Group, its German competitor. The Americans overreached themselves, say industry experts.

It was a handful of words for what seemed like unimaginable news: "We never managed a turnaround," said a Wal-Mart spokeswoman today, trying to explain the end of her company's German venture. The world's largest retail corporation, growing worldwide as fast as the likes of McDonald's and Coca-Cola, has given up on Germany after an unrewarding eight-year slog. It will sell all 85 franchise stores to its German competitor, Metro Group, which will replace the American stores with hypermarkets run by a Metro subsidiary called Real.

It's a step that Wal-Mart's German chief David Wild still said was unthinkable as late as June this year. "Germany is the third-biggest market for retail goods in the world, after the United States and Japan," he told German newspaper Die Welt am Sonntag. "As a global concern we can't ignore the German market." Wal-Mart, he said, was simply considering closing a few unprofitable stores.

Friday's announcement that Walmart is abandoning its German operation registers as a painful defeat for the retail giant. Elsewhere its formula for selling discount goods has long been an international success story. The American firm operates 2700 stores in 14 countries outside the United States. In the first quarter of 2006 alone, the company's profits rose 6.3%, to a record level of $2.61 billion, and international turnover amounted to $79.61 billion -- 12.3% up on the previous year. Walmart's total group turnover in 2005 was a staggering $312 billion.

In Germany, though, Wal-Mart lost money. The company announced it would incur a pre-tax loss of $1 billion on the German operation. Nationwide losses for 2005 are thought to have run into hundreds of millions of euros. The reason, experts suggest, was an incomplete market strategy. In 1997 Wal-Mart bought 21 stores from the Wertkauf discount chain, then added 74 shops purchased a year later from Interspar. But the rapid expansion was more of a bargain hunt by Wal-Mart than a coherent, fully-developed concept. "Wal-Mart bought whatever stores were for sale and then just hung its name over the door," says Ulrich Eggert, a trend researcher for entrepreneurial consultancy, BBE. "So there was always more Wertkauf or Interspar waiting for customers in those stores than Wal-Mart -- which means two very different retail concepts. Wertkauf stores ... were nicely outfitted, large, with fairly good service; Interspar had small, sort of grungy shops."

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Full Story

[Ban Hammer 14,674]

hate to break this to you....but old news

this just in - and related to some of this

Wal-Mart quits Germany

story

[Mr. Big Dog 10,747]

hate to break this to you....but old news

this just in - and related to some of this

Wal-Mart quits Germany

story

I saw the refenrence in the other threat. But this truly deserved it's own threat. The "unbeatables" have been beaten! They can't get a foothold in the world's third largest retail market. That's huge! Viva Germany!

[I'm Gone 60]

As long as they still have stores in Maryland I couldn't careless that they sold their stores in Germany. Their loss not mine. Will be heading there tomorrow to reap the bargins. LOL

[Mr. Big Dog 10,747]

Will be heading there tomorrow to reap the bargins. LOL

Bargain: Something you don't need at a price you can't resist!

Good Luck...

[choji 0]

Will be heading there tomorrow to reap the bargins. LOL

Bargain: Something you don't need at a price you can't resist!

Good Luck...

[tmma 467]

Wooo-Hooo: The Arkansas Suckers have been beaten!

RETAIL GIANT HUMBLED

Wal-Mart Admits German Defeat

By Anne Seith

The American discount chain Wal-Mart is a worldwide phenomenon -- but in Germany it has been an embarassing flop. All 85 of its stores will be sold to Metro Group, its German competitor. The Americans overreached themselves, say industry experts.

It was a handful of words for what seemed like unimaginable news: "We never managed a turnaround," said a Wal-Mart spokeswoman today, trying to explain the end of her company's German venture. The world's largest retail corporation, growing worldwide as fast as the likes of McDonald's and Coca-Cola, has given up on Germany after an unrewarding eight-year slog. It will sell all 85 franchise stores to its German competitor, Metro Group, which will replace the American stores with hypermarkets run by a Metro subsidiary called Real.

It's a step that Wal-Mart's German chief David Wild still said was unthinkable as late as June this year. "Germany is the third-biggest market for retail goods in the world, after the United States and Japan," he told German newspaper Die Welt am Sonntag. "As a global concern we can't ignore the German market." Wal-Mart, he said, was simply considering closing a few unprofitable stores.

Friday's announcement that Walmart is abandoning its German operation registers as a painful defeat for the retail giant. Elsewhere its formula for selling discount goods has long been an international success story. The American firm operates 2700 stores in 14 countries outside the United States. In the first quarter of 2006 alone, the company's profits rose 6.3%, to a record level of $2.61 billion, and international turnover amounted to $79.61 billion -- 12.3% up on the previous year. Walmart's total group turnover in 2005 was a staggering $312 billion.

In Germany, though, Wal-Mart lost money. The company announced it would incur a pre-tax loss of $1 billion on the German operation. Nationwide losses for 2005 are thought to have run into hundreds of millions of euros. The reason, experts suggest, was an incomplete market strategy. In 1997 Wal-Mart bought 21 stores from the Wertkauf discount chain, then added 74 shops purchased a year later from Interspar. But the rapid expansion was more of a bargain hunt by Wal-Mart than a coherent, fully-developed concept. "Wal-Mart bought whatever stores were for sale and then just hung its name over the door," says Ulrich Eggert, a trend researcher for entrepreneurial consultancy, BBE. "So there was always more Wertkauf or Interspar waiting for customers in those stores than Wal-Mart -- which means two very different retail concepts. Wertkauf stores ... were nicely outfitted, large, with fairly good service; Interspar had small, sort of grungy shops."

...

Full Story

[Nessa 23]

Jeez, an anti-german-thread, are you THAT ready?

you're a brave brave man

[Identity 0]

As long as they still have stores in Maryland I couldn't careless that they sold their stores in Germany. Their loss not mine. Will be heading there tomorrow to reap the bargins. LOL

Change your thinking on this. The American Economy is suffering due to the anti-competitive conduct of Wal-Mart (think, Monopsony). I believe there is a pending lawsuit? Can anyone confirm?

[I'm Gone 60]

As long as they still have stores in Maryland I couldn't careless that they sold their stores in Germany. Their loss not mine. Will be heading there tomorrow to reap the bargins. LOL

The American Economy is suffering due to the anti-competitive conduct of Wal-Mart

How is this? If Wal-Mart wasn't around it would just be someone else selling the stuff and probably for a higher price. Can't see where Wal-Mart is anti-competitive. I think if you look up competitive in the dictionary it will say "See Wal-Mart."

[Mr. Big Dog 10,747]

As long as they still have stores in Maryland I couldn't careless that they sold their stores in Germany. Their loss not mine. Will be heading there tomorrow to reap the bargins. LOL

The American Economy is suffering due to the anti-competitive conduct of Wal-Mart

How is this? If Wal-Mart wasn't around it would just be someone else selling the stuff and probably for a higher price. Can't see where Wal-Mart is anti-competitive. I think if you look up competitive in the dictionary it will say "See Wal-Mart."

Not quite. Read the article again. The most competitive company (as you would have it) didn't turn a dime's worth a profit in nearly a decade in the world's third largest retail market. On the contrary, they booked a loss of $1,000,000,000 or so. Now, why would that be if they are such a great, competitive company?

I'll give you a hint: There are laws against dumping in Germany. That's what Wal-Mart does and that's how they compete - by selling ####### at a loss until the competition is gone and neither the supplier nor the consumer have anywhere else to go. Then they dictate the terms of business on both sides. That ain't competition, my friend. Now, they coudn't run that kind of shite in Germany where something of a fairness in the marketplace to ensure continued competition is actually enforced. And in a fair and competitive marketplace, Wal-Mart just doesn't stand a chance.

[Meriem_DZ 37]

I was in Germany in 2003 and stopped in Walmart to shop. At the front of the store was a bar. All the men were at the bar drinking big tall glasses of beer while the women shopped.

Meriem

[Fischkoepfin 1]

hate to break this to you....but old news

this just in - and related to some of this

Wal-Mart quits Germany

story

I saw the refenrence in the other threat. But this truly deserved it's own threat. The "unbeatables" have been beaten! They can't get a foothold in the world's third largest retail market. That's huge! Viva Germany!

Right on, ET!

I can't help but wonder how Walmart couldn't compete in Germany if they're really that cheap. After all, Germans are very parsimonious and buy mostly at discounters. Makes me think that Walmart is not really that cheap or that their quality was sub par...

Jeez, an anti-german-thread, are you THAT ready?

you're a brave brave man

Huh?

[one...two...tree 2,762]

As long as they still have stores in Maryland I couldn't careless that they sold their stores in Germany. Their loss not mine. Will be heading there tomorrow to reap the bargins. LOL

The American Economy is suffering due to the anti-competitive conduct of Wal-Mart

How is this? If Wal-Mart wasn't around it would just be someone else selling the stuff and probably for a higher price. Can't see where Wal-Mart is anti-competitive. I think if you look up competitive in the dictionary it will say "See Wal-Mart."

Walmart's style of competition would be like an NFL team where all the players are juiced, the refs have been paid off, and field lines have been jerimandered. Walmart is the antithesis of true competition.

[Fischkoepfin 1]

As long as they still have stores in Maryland I couldn't careless that they sold their stores in Germany. Their loss not mine. Will be heading there tomorrow to reap the bargins. LOL

The American Economy is suffering due to the anti-competitive conduct of Wal-Mart

How is this? If Wal-Mart wasn't around it would just be someone else selling the stuff and probably for a higher price. Can't see where Wal-Mart is anti-competitive. I think if you look up competitive in the dictionary it will say "See Wal-Mart."

Walmart's style of competition would be like an NFL team where all the players are juiced, the refs have been paid off, and field lines have been jerimandered. Walmart is the antithesis of true competition.

Great analogy! You just forgot to include the fans into the equation because they have been brainwashed to believe that their team is the best in any respect!