The international division of Wal-Mart Stores (NYSE: WMT) would rank as the fifth-largest global retailer if it were a standalone company. With sales of $100 billion, it certainly looks impressive from a sales perspective. But, Wal-Mart international has failed in quite a few markets in recent years under the then-leadership of current company CEO Mike Duke.
Recent partnerships in India and China have repaired Wal-Mart's somewhat disjointed international picture, and international operations are now given autonomy and freedom to operate as needed inside the culture of each region and country where they are located. Long gone are the days of the "big box" retailing format being simply exported to other countries. That strategy obviously does not work.
And the timing is about as right as can be. Wal-Mart international chief Doug McMillon sees Wal-Mart as becoming a global company instead of an American one. With a $100 billion international footprint, some would argue it's already there. Not so -- that's just a quarter of the total annual sales for a retailer operating in its home country with a much smaller fraction of the world's population.
In Japan, Wal-Mart's stake in Seiyu has been a rough ride, although -- like always -- Wal-Mart is learning from its mistakes and is making appropriate changes. Wal-Mart's future is bright internationally, but it just won't be nearly as easy as the amount of effort it took to conquer the American market. Far from it.
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