1. Why did Wal-Mart fail in Germany ?

2. TOP 15 LARGEST RETAILERS in the WORLD
Rank
Company
Type
HQ Country
Sales USD in millions 1
Wal-Mart Store, Inc
Discount Store
United States
$285,222 2
Carrefour SA
Hypermarkets
France
90,297 3
Home Depot Inc.
Hardlines
73,094 4
Metro AG
Diversified
Germany
70,093 5
Royal Ahold NV
Supermarkets
Netherlands
64,615 6
Tesco PLC
UK.
62,284 7
Kroger Co.
56,434 8
Sears Holding Corp.
Department Stores
55,800 9
REWE Handelsgruppe
50,698 10
Costco Wholesale Corp.
Warehouse Clue
48,107 11
ITM Enterprise SA
47,218 12
Target Corp.
Discount Stores
45,682 13
Group Casino
45,155 14
Aldi Einkauf GmbH & Co OHG
42,981 15
Schwarz Group
42,571

3. Revenue : 315.654 billion USD (2006)
Net Income : billion USD (2006)
Employee : 1.8 Million (2006)
Type : Discount Department store/ Public
Founded : Sam Walton ( ),
Founder
Key People : H.Lee Scott, CEO
S. Robson Walton, Chairman
Industry : Retail
Products : Discount stores, Grocery stores,
Hypermarkets

4. Revenues in Germany (Bil..Euro)
GERMANY TOP 15 RETAILERS
Rank 32.0
Company
Revenues in Germany (Bil..Euro) 1
Metro AG
32.0 2
Rewe Group
28.6 3
Edeka/AVA/Group
25.2 4
Aldi Group
25.0 5
Schwarz Group
17.2 6
Karstadtquelle
16.1 7
Tenglemann Group
12.5 8
Lekkerland-Tobaccoland
8.2 9
Spar Group
7.5 10
Schlecker
5.3 11
Globus
3.4 12
Dohle Group
2.9 13
Wal-Mart Germany 14
Norma
2.4 15
Bartels-Langness
2.1

5. Retail Competition Manufacturers Small Immobile Uniformed End user
Retailer Act
Small
Immobile
Uniformed

6. Retailer’s Competitive Advantages
Lower Prices (Everyday low prices)
More Favorable (Near or easily accessible)
Better Product Selection and Category
Management
Superior Customer Service

7. Impediments of Retailer
Legal Barrier (Law and some forms of behavioral Regulation)
Stringent Planning Regimes and Zoning Regulations)
Restrictive Shopping Hour Regulations
Antitrust and (un)fair Trading Regulations that may restrict price competition or prohibit some forms of advertising and sales promotion)

8. Internationalization in Retailing
Status Quo
- A Handful of Players of International Retailer such as Carrefour and Aldi
- Most of these companies are based in Western Europe rather than in
the US or North America
Prevailing Strategies such as organic growth, joint ventures, Strategic alliances, Franchising, Mergers and Acquisitions
Impediments to Retail Internationalization
- Mixed bag, Barrier to entry, Aggressive, Reaction by the
incumbent Oligopoly

9. The German Retail Market
General Background Information
- The biggest national retail market in the old World
Oligopolistic Market Structure- The Key Player
Ultra-Low Profitability – Probably the least profitable
all over the industrialized world
Retail –Specific Legislation such as Planning Law
and Zoning Regulation

10. Store Opening Hours in Select EU Countries
Country
Mon-Fri
Sat
Sun/Holidays
Hours/Week UK
168
Netherlands
Closed 96
Spain
144
France
Open (Only Store Owner and family members but no employees)
144 (Minimum)
Germany 80
Source : KPMG

11. Wal-Mart’s Strategy in Germany – Why It Failed
Flawed entry-by-acquisition Strategy
Management by “hubris and Clash of Cultures”
Neither “ Everyday low prices” nor” Excellent Service”
Repeated Infringement of German Laws and Regulation

12. Thank you for your attention