Wednesday, October 16, 2013

Wal-Mart Retools International Strategy


Wal-Mart Stores is closing locations in Brazil and China as it tries to get a handle on its international business and reignite growth in its overseas operations.
The world’s largest retailer plans to close 50 poorly performing stores in Brazil and China and add 14 million square feet of new store space in international markets, down from its earlier forecast of 20 to 22 million square feet.
With 6,200 stores outside the U.S., Wal-Mart’s international operations posted $135 billion in sales in the year that ended Jan. 31—29% of the total—and have long been seen as the company’s most important source of growth. But the growth rate slowed to 7.4% in the most recent fiscal year from 15.2% the year before and more than 20% before the recession. Sales at stores open at least a year declined last quarter in Canada, Japan, Mexico and Central America, while traffic declined in Canada, Brazil and China.
Meanwhile, the store chain is planning to add more than 500 stores in the U.S over the next two years.
Wal-Mart hopes to add another 400 Neighborhood market stores, which focus on grocery and consumables, by 2017.

http://blogs.wsj.com/corporate-intelligence/2013/10/15/wal-mart-retools-international-strategy-closes-some-stores-in-brazil-and-china/

2 comments:

  1. Wow. I have never heard of a Wal Mart closing.

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  2. I would be curious to know how Wal Mart is viewed in China. I recall Dr Z talking about how in China, customers like to be seen drinking their Starbucks and that going to Mc Donalds is a big deal. Do they see Wal Mart this way or do they see it more like us- pretty cheap and not really the place to go to be "seen."

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