Wal-Mart to sell 85 stores in Germany and exit country


It's official: after a month or so of speculation, Wal-Mart will be jettisoning 85 of its stores in Germany to area company Metro AG, effectively taking Wal-Mart out of the German marketplace completely. With Wal-Mart once having hoped it could crack the retailing business in Europe's largest economy, it must have met a similar fate to what happened when Wal-Mart recently exited the South Korean market. Just what is the retailer's true goals with international expansion when, just this year, it's left two large markets?

For starters, Wal-Mart appears to be betting on cracking the Chinese marketplace, which holds just about all the international potential one could hope for. With Wal-Mart already doing so much business importing goods from China, perhaps the "buddy system" will repay the retailer as it forges ahead into that country.

After almost nine years in Germany, Wal-Mart seemingly could not win over German customers, who are very price-focused. Although Wal-Mart offers "everyday low prices", it found that its German competitors offered just as low of a price on many items, putting it on a level playing field with the Wal-Mart stores in the area. In addition, some of Wal-Mart's signature offerings like smiling employees, baggers at checkout and stores outside of town centers proved unfavorable to the standard German consumer.

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