Did Germany’s Wal-Mart Babes look this good?!
Wal-Mart, the world’s biggest retailer, is selling its underperforming German stores to the country’s leading retail chain Metro, marking a major retreat that will cost it about $1 billion.
The U.S. retail giant has struggled to capture market share ever since entering the cut-throat German retail arena eight years ago, frustrated by razor-thin margins and tight labor and trade laws in a country still marked by tepid consumer spending.
The exit from Germany marks the second time in two months that Wal-Mart has pulled out of one country to focus on more promising opportunities elsewhere — such as in China, South and Central America, or India.
“It has become increasingly clear that in Germany’s business environment it would be difficult for us to obtain the scale and results we desire,” said Wal-Mart’s vice chairman Michael Duke.
Could it be that Wal-Mart doesn’t like playing when the rules are enforced?
Simply another case of top management failure.
1) WalMart in Germany was neither cheaper nor better than the competition.
2) WalMart definitely lost the game when its management (US-based, presumably) tried to impose stupid harassment and intra-company regulations (which seems to be accepted only within the US). This went so far as to forbid members of their staff to meet on “love” reasons outside the company and not on duty. This attempted invasion of privacy rightly brought them an extremely bad press.
But you can learn from defeats, if you are able and willling to do so.
The Germany economy hasn’t been doing too well lately. All these rules have consequences. That said, I doubt WalMart would have gone in without knowing the rules, and they probably lost for other reasons. I’ve heard that Aldi is bigger there.
…and I’d add that very few people claim that Wal-Mart “breaks laws” although given the volumes of press I find it hard to fathom why some conservatives insist on continuing to ask what we have against Wal-Mart. Christ people, read some press once in a while.
My contention isn’t that they are law-breakers, but that they aren’t ethical.
But beating the dead horse with yet another recitation of examples isn’t going to further the conversation. If you can’t see what is wrong with the invasive power some corporations have over the lives of regular working citizens, our children, our communities, and our culture, then you will never see it because you just don’t care about anyone who isn’t you.
19, Michael, You consistently post the most outlandish claims and NEVER back them up. Well, I, and most others at DU don’t play that way. Here is a short list for you.
Wal-Mart broke labor laws in California
http://tinyurl.com/gmhrr
Wal-Mart conspires to hire illegal immigrants
http://tinyurl.com/gj7pa
Wal-Mart discriminates against disabled workers
http://tinyurl.com/zsx4r
Wal-Mart illegally retains customers PINs
http://tinyurl.com/emazd
Wal-Mart broke Child Labor laws
http://tinyurl.com/zhw55
Wal-Mart forced employees to work without being paid.
http://tinyurl.com/bma9o
Wal-Mart’s union busting
http://tinyurl.com/f73aa
Wal-Mart Pharmacy refuses to fill prescription
http://tinyurl.com/flmor
Wal-Mart violates union certification
http://tinyurl.com/nhasv
Wal-Mart evades taxes
http://tinyurl.com/pqnv4
funny how it is “whatever the market will bear” with conservatives until you say you want a Cuban cigar ….
#2, My European refrigerator holds food for an entire month.
So does my parents’ refrigerator… as well as my grandparents’ refrigerator, and most of my European friends’ refrigerators. 
26, I just hope you don’t keep perishables in your refrigerators that long.
Our country is based on “Corporate” Democracy which is the freedom to exploit for profit. If they want to selfishly refuse our corporate values then I say it’s time to start looking for their “hidden” WMD’s.
Our country is based on “Corporate” Democracy which is the freedom to exploit for profit. If they want to selfishly refuse our corporate values then I say it’s time to start looking for their “hidden” WMD’s.
WMDs, = Wal-Mart’s Democracy style.
I’ve been to Germany twice. Both those times I stayed with families who have been long time family friends. This past summer I shopped at a Wal-Mart in Germany. It was a nice enough store.
I think one critical difference between Germany and the US is the degree of consumer peer pressure that exists. Most Germans don’t feel the need to buy stuff they don’t need. How many American households have “holiday placemats”?
#24…..Mr. Fusion…..come on guy…..you often accuse me of getting my facts from legitimate news sources such as Fox News and then you list all those Wal-Mart links, only one of which is not from some liberal group or union group. Even the one is over 5 years old and the courts have said Wal-Mart has made the effort needed to show it was correcting the lunch and break problem in California.
I’m truely amazed.
Its because the German stores had unions inplace in the wal mart stores. They were the only store to have unions. All workers got 3 week of vacation per year, higher pay, and benefits.
I would bet money they are pulling out to avoid it being used in the Teamsters lawsuit against Wal-Mart. ‘It’ being the fact that they already have (had) union employees. It costs them a billion in the short term, but probably saved them ontold billions if unions got a foothold in US stores.
Aric, that’s not true at all. All bigger chains in Germany have a certain percentage (usually around 25%) of union employees and the wages/ benefits/vacation time is virtually identical between all of them. The playing field is level, so to speak.
The reason Wal-Mart failed in Germany is because they made a mess of the whole undertaking from start to finish. They took over two second-tier chains which had nothing in common and tried to merge them, were far too small to have enough leverage with suppliers and the (largely US-based) management didn’t have a clue about the market, culture and laws.
For example they employed American buyers who had so little knowledge of the market that they ordered piles and piles of pillowcases which couldn’t be sold because German pillows have a different size than US ones. In a market with razor-thin margins you just can’t afford blunders like that.
Wal-Mart pulled out of Germany because they’ve been losing money hand over fist for several years with no end in sight. You don’t retreat from the 3rd biggest retail market in the world because someone may or may not use your presence there as an argument in court.
Thanks the above all comments, I learn from all of you. I think the defeat of Wal-Mart may be little bit about the living style of European and mostly in the cost of running business. German has a history long of high cost in its market for any business as I heard from my friend who study economy major in German university in her thrid year.
Well to sum your very elaborate posts in this thread up, I would like to put it as follows: Wal-Mart overestimate its own relevance to the German retail market: It was zero.
Nobody ever needed Wal-Mart as a new shopping outlet here. when I was in rural Pennsylvania as a student, there simply would be another place to go for getting groceries, so everybody went to Wal-Mart (killing the main street businesses within months).
Germany is the most competitive retail market in the world. It is virtually not possible to make a horserace out of this market. The average profit margin is about 0,5%, if a company like Aldi can make 1,5% it is considered as excellent. German retail chain are successful worldwide (notably Metro, Lidl and Aldi) because they have long time experience in dealing with harsh market conditions. Wal-Marts shear size put them in a favorable position in many U.S. communities, as the stores are big enough to suck up the entire buying power of a neighbourhood, creating natural monopolies which can be exploited by the company.
Now Wal-Mart comes to Germany and pretends to offer something new: low prices for good quality. Overlooking that these thing have been around for decades due to the said market conditions. I have never seen such an extent of cultural naivety and ignorance before. The American consumer culture was simply transferred to Germany. In Cologne, customers complained, that they were approached by “unknown” people in the parking lots. It was just the greeter! These folks never showed up again. Cashers used to start fake conversations with the customers (How are you? Did you find every item you wanted?) embarrasing the customers, as being talked to be complete strangers is considered highly improper in Germany.
Wal-Mart tried to convey their image of shopping: an event for the whole family in the close neighbourhood. In Germany shopping is a highly unemotional and rational thing. You go where the greatest bargains could be had, no frills, no service at all please as this only raises the prices. German shoppers use to be very informed about quality and prices before the shop, so the are in no need for customer guidance whatsoever. They are not willing to accept greaters, baggers, talking cashers and most of all smiling sales personnel. Who smiles with no reason at all, has something to hide! German society tends to scrutinize new products excessively by independent research institutes to know about quality, endorsements by the retailer itself is highly distrusted. The next thing is, that you wont get German consumers to believe shopping can be a rewarding activity. Shopping is something you have to do in order not to starve tomorrow so you get where things are cheap, grab your things ( not puzzling multitude of product varities please) and leave.
Only IKEA has managed to create a kind of a feel-good-atmosphere where people like to go, but no other company so far. Everyone failed over German rationality and service refusal.
Two wrongs don’t make a right, but they make a good excuse.–Thomas Szasz (1920–), The Second Sin
information mysore, business directory mysore, dasara 2008, news mysore, today headlines mysore, daily news mysore, daily headline mysore, events mysore, emergency numbers mysore, weather report mysore, train timings mysore, theatres information mysore, choultry mysore, choultry phone number mysore, classifieds mysore, properties mysore, tours and travels mysore, jobs mysore, website design mysore, hobby classes mysore, matrimonial mysore, almanac mysore, opinion poll mysore, web brochures mysore, religious places mysore, hospitals phone numbers mysore, train timings mysore, theatre phone number mysore, faq mysore, cultural events mysore, to wish your beloves, emergency phone numbers mysore, ambulance phone numbers, hot news mysore, government approved valuers mysore, list religious places mysore, cinema theatres information mysore, theatres timings mysore, list of choultry mysore, social events mysore, veg hotels mysore, theatres information mysore, free classified mysore, properties mysore, veg hotels mysore, dasara2008 mysore, web development mysore, attractions in mysore