Walmart Germany, good bye and thanks for nothing

Discussion in 'Politics, Religion, Social Issues' started by takao, Jul 29, 2006.

  1. takao macrumors 68040

    takao

    Joined:
    Dec 25, 2003
    Location:
    Dornbirn (Austria)
    #1
    reading the newspaper this morning i finally read what was expected sooner or later anways:

    Walmart sold it's stores to the german Metro group for a bargain price after 8 years with losses of 200-500 million euro each year and about 7 different managers and numerous lawsuit because of working laws

    links in german:
    (why the titan failed)
    http://www.spiegel.de/wirtschaft/0,1518,429017,00.html
    (no chance in germany)
    http://www.spiegel.de/wirtschaft/0,1518,428975,00.html
    (chronology of a failure)
    http://www.spiegel.de/wirtschaft/0,1518,429049,00.html

    and just 1,5 months ago the last walmart germany manager said "we can't ignore the german market ... and we will turn positive that's for sure"
     
  2. Thomas Veil macrumors 68020

    Thomas Veil

    Joined:
    Feb 14, 2004
    Location:
    Reality
    #2
    Given Wal-Mart's past, I suspect that it wasn't that they couldn't figure out a way to pay their employees the legal wage, treat them well and make a profit. It was because they couldn't implement their plan of price-undercutting everyone else and requiring unpaid overtime, so they picked up their weinerschnitzel and went home.
     
  3. Hoef macrumors 6502a

    Hoef

    Joined:
    Jul 11, 2004
    Location:
    Houston, TX..... (keep walking)
    #3
    I thought they couldn't find retired people to say hello at the door .... working is the last thing most retired people in Germany want to do :p
     
  4. takao thread starter macrumors 68040

    takao

    Joined:
    Dec 25, 2003
    Location:
    Dornbirn (Austria)
    #4
  5. Ugg macrumors 68000

    Ugg

    Joined:
    Apr 7, 2003
    Location:
    Penryn
    #5
    Walmart is guilty of cultural imperialism. The buyers were all Americans unfamiliar with the German market, they were buying things that the Germans simply didn't need, couldn't use and were more expensive than what was found in other low price German stores. I think they thought it was going to be a cake walk but it didn't happen.

    The Uk is the only country in Europe where Walmart is still operating but they're under pressure there too.
     
  6. Hoef macrumors 6502a

    Hoef

    Joined:
    Jul 11, 2004
    Location:
    Houston, TX..... (keep walking)
    #6
    You think the folks in Arkansas didn't have a clue what was going on in the rest of the world (sarcastic comment) .... Though they do fine in China and South Korea, no?
     
  7. Ugg macrumors 68000

    Ugg

    Joined:
    Apr 7, 2003
    Location:
    Penryn
    #7
    Well, they just pulled out of South Korea, are rethinking their presence in Argentina and are slow to adapt to the conditions in China unlike their competitor Carrefour. They're doing very well in Mexico but Walmart has a presence in only about 10 countries outside the US. I'm sure that over time they'll learn to adapt to local conditions but it's going to be a long and bumpy haul.

    Their greatest asset is supply chain management and if China is able to improve its infrastructure they could well surpass Carrefour.
     
  8. takao thread starter macrumors 68040

    takao

    Joined:
    Dec 25, 2003
    Location:
    Dornbirn (Austria)
    #8
    just again read that really good .pdf about walmarts situation in germany from 2003

    http://www.hicbusiness.org/biz2003proceedings/Andreas Knorr.pdf

    actually even in hindsight it's quite interesting that even in 2003 everbody knew what mistakes they made and that in 3 years they weren't able to do something against it at all

    even more ironically is that the chain (owned by Metro) the stores will get integrated too is in a crisis as well and was actually rumored to get sold to walmart a year ago
     
  9. thequicksilver macrumors 6502a

    thequicksilver

    Joined:
    Sep 19, 2004
    Location:
    Birmingham
    #9
    Where on earth do you get that idea from? Asda is the solid number two supermarket over here, and is only losing ground to third placed Sainsburys due to Sainsburys getting itself out of a bad ten year slump (where it went from first to third between about 1995 and 1999).

    It could be said that Asda hasn't done quite as well as Walmart had hoped on taking it over, but "under pressure"? No way.
     
  10. Ugg macrumors 68000

    Ugg

    Joined:
    Apr 7, 2003
    Location:
    Penryn
    #10

    Hmmm, sounds like a contradiction in terms. ASDA is only barely in second place according to this Wikipedia article with only a .4% lead in market share over Sainsbury's. I would bet that a large part of the success of ASDA in Britain is the language and the fact that the name walmart isn't seen. I'm sure part of the lack of walmart in Germany is the name especially in the era of bushco.
     
  11. thequicksilver macrumors 6502a

    thequicksilver

    Joined:
    Sep 19, 2004
    Location:
    Birmingham
    #11
    Actually, it is seen at every store - each one proudly and loudly proclaims "Asda - Part of the Walmart family". The Wikipedia article you just linked to shows one of the louder examples.

    The reason it isn't a problem I would suggest isn't for either of the things you mention, it's because Asda is a traditional shop over here with a good historical reputation. While most acknowledge that it is owned by Walmart (it's hardly a fact that they strive to hide), the fact that Asda been part of the landscape for so long means that any negative connotations from the Walmart name are almost entirely masked. That Asda also has a generation of experience of the British market helps greatly too, meaning that Walmart were able to get a strong foothold in the market without the teething problems.
     

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