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Walmart Creates New Global E-commerce Division

Walmart (WMT) has created an initiative it's calling "Global.com" that will try to standardize the online and brick-and-mortar interactions customers have in the global markets where it operates.

Walmart Vice Chairman Eduardo Castro-Wright said "now that we have a well-defined blueprint to continue to grow our online business, it's time to leverage our size and global footprint to take advantage of this evolving customer trend." Evolving customer trend? What is this, 2004? It's no longer a trend, Mr. Castro-Wright; it's an absolute customer requirement. Right now.

Continue reading Walmart Creates New Global E-commerce Division

Wal-Mart progressing in international markets -- finally

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.

Continue reading Wal-Mart progressing in international markets -- finally

Wal-Mart upgraded as international sales continue growing

Wal-Mart Stores, Inc. (NYSE: WMT) has been alone as a shining retail star in the recent economic recession. Consumers flocked to every possible bargain they could in every industry, and Wal-Mart cleaned up in retail with its bargain basement pricing on everything from toilet paper to car batteries to Doritos.

Continue reading Wal-Mart upgraded as international sales continue growing

Is Wal-Mart planning to dump its UK Asda division?

Wal-Mart Stores, Inc. (NYSE: WMT) had great plans for the Asda grocery chain in the United Kingdom when it purchased it back in 1999. It wanted to gain a strong foothold in a growing international market and start dominating the retail landscape like it had done so mercilessly in the U.S. with its grocery-laden supercenters.

After almost a decade, Asda hasn't worked out as planned in terms of overall market dominance. It's still in third place behind market leaders Tesco and J. Sainsbury. Just like Wal-Mart's plans in Germany and South Korea -- which the retailer exited in 2006 -- the UK's Asda hasn't turned into what the world's largest retailer has hoped for.

So, with almost a decade under its belt in the UK, is Wal-Mart ready to pull out of there as well? Is it realistic to think it can dominated the grocery business in every foreign market it enters? Asda was prevented from buying the Safeway chain by the UK Competition Commission, which smacks of too much regulation, and probably contributed to why Wal-Mart may be think the UK a lost retail cause. After all, India and China are turning out to be much hotter markets in the last nine years anyway. Would Wal-Mart take part of Asda public, wait a little while, then sell it altogether? Don't put it past Bentonville.

Wal-Mart solidifies India plans with Bharti for 2008

Although Wal-Mart Stores, Inc. (NYSE: WMT) and Indian retail powerhouse Bharti hooked up in a 2007 partnership t being Wal-Mart's presence into India, concrete plans were not set in stone. That is, until now. The world's largest retailer has taken a measured approach into entering the Indian market without upsetting the traditional "mom-n-pop" retailers that form the retail backbone of Indian consumer spending.

But, Wal-Mart has now laid out plans to open 10 to 15 large retail stores [subscription required]within the next seven years in a disciplined and orderly way. These locations will employ an estimated 5,000 Indian citizens and will be 50,000 to 100,000 square feet in size. The first is expected to open and be ready for the public by the end of this year.

With an Indian retail market valued at $300 billion -- but being fed by small, family-run operations -- Wal-Mart of course wants its share of that pie. In addition to going after Indian's huge retail marker with global retail competitors, Wal-Mart also wants to modernize India's retail industry and supply chains at the same time. That would give it a large competitive advantage over the established retail industry, even though nobody is talking about that. It's modus operandi for Wal-Mart, though. Over time, it beats the competition down -- and it's why it has become the world's largest retailer in the first place.

Wal-Mart's strong international growth a sign of things to come

When Wal-Mart Stores, Inc. (NYSE: WMT) reported it had achieved its first $100 billion quarter in the company's history Tuesday, it was probably a time to celebrate at its Bentonville headquarters. But even a $100 billion quarter doesn't make for good feelings sometimes, as much of that growth came from the company's international division. Yes, that's the one I've lamented over frequently in the past. This time, it was shining brightly.

Wal-Mart's Q4 sales came in showing a 19% international growth rate that pushed those sales to $27 billion for the just completed quarter. At the same time, the retailer's U.S. sales rose only 5%. Is international becoming the company's growth engine like it has frequently wanted to happen? This quarter proved it -- yes, it has. Wal-Mart's Asda grocery chain in the UK even showed same-store sales growth in the "mid-single digits" for all of 2007. Wal-Mart indicated that its Asda operation was the fastest growing food retailer in Europe, ahead of competitors Tesco and Sainsbury.

Is "Everyday Low Prices" winning over customer groups outside the U.S. now? That was the reason given behind Asda's growth, as customers seeking out the lowest prices more frequently shopped at Asda. Is this the beginning of the "Wal-Martization" of all its global markets? Commodity and energy prices aren't doing anything to help, but it's too early to make that call. Give four quarters of outstanding international growth, and finally, Wal-Mart investors may have something to cheer about.

International chief John Menzer leaving Wal-Mart

Wal-Mart (NYSE: WMT)'s international chief, John Menzer, is leaving the company after 12 years. Menzer will retire on March 1, leaving behind a good legacy of international expansion and growth, along with a few high-profile failures in the process.

Although Wal-Mart has done exceptionally well in Mexico recently, the world's largest retailer also failed miserably in Germany and South Korea. It exited both countries at the same time it was mulling market introductions into China and India (which it completed in 2007).

Wal-Mart CEO Lee Scott gave huge kudos to Menzer, saying, "I have seen first-hand the difference he has made ... he is probably best known for transforming Wal-Mart International into a well-organized, fast-growing and profitable business. But he is also a talented corporate strategist and I personally have found him to be a valued business counselor."

Menzer's streak in finding nuggets in the rough to allow Wal-Mart entry into many global markets was impressive. He led the acquisition of UK-based ASDA (turning out well) as well as Japan's Seiyu (not so well). Wal-Mart has said that it will divide his responsibilities into individual international businesses to achieve tighter focus, meaning Wal-Mart's growing international presence will see more autonomy than before. To ensure it can grow its business outside the U.S. (its largest market), this is most likely for the better.

Wal-Mart coming to Russia?

Wal-Mart Stores Inc. (NYSE: WMT) has made a pretty big deal recently of its international expansion plans that would add sales and (hopefully) profit into the company's coffers. This is especially important as Wal-Mart's U.S. operations, while continuing to bring in sales, do so at lower rates every quarter. It's no surprise -- the $348 billion retailer is just too large to have any kind of huge growth in its largest market; it's tapped out to a degree. Solution? Get into the international marketplace as good as you can.

Now, Wal-Mart knows all about defeat overseas; it exited the South Korean and German markets in 2006 since it became clear those countries' citizens just weren't excited about buying from Wal-Mart. The company sold its operations in those two countries and did an about-face of sorts. It partnered with Trust-Mart in China and Bharti in India to get a foothold in those two countries -- where consumer spending is not doing anything but going up. Now, word on the street is that Wal-Mart may be entering the Russian market.

The founder of the Pyaterochka retail chain, Andrei Rogachev, wants to bring Wal-Mart to Russia apparently. According to Russian property development company Macromir, Wal-Mart has been talking since May about a possible entry into the Russian retail market. If Macromir and Wal-Mart reach an agreement soon, the global retailer will lease space in shopping complexes or new stores built just for Wal-Mart. These stores would be Supercenter-size, at roughly 200,000 square feet each. It's still a rumor that Wal-Mart will even enter the Russian market, but if it is serious about expanding international operations that are actually successful, Russia would make a great choice.

The Wal-Mart Weekly: international plans and all that

Welcome to the seventh installment of The Wal-Mart Weekly -- a new weekly column dedicated to bringing you insight, wit, facts, results, opinions and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.

Last week I looked at Wal-Mart Stores' (NYSE:WMT) image issues to see what the world's largest retailer had in plan to goose its public image and try to form some sort of cohesive marketing message for its consumers. Basically, I can't find any strong image that Wal-Mart presents right now except the "Always Low Prices," and that is somewhat stale at this time.

This week I wanted to discuss what the retailer could do to supercharge its international strategy. Hey, when sales are going down in your largest market (the U.S.), there's nothing better than to attack international markets and grow sales there, right? The problem is, Wal-Mart has failed big-time in a few international countries recently (South Korea and Germany), but it's pushing hard into Europe (possibly) and definitely into China and India.

Continue reading The Wal-Mart Weekly: international plans and all that

Wal-Mart considering Russian market

Although Wal-Mart's international strategy failed in Germany and South Korea last year, the company is determined that at least some of the pieces of its international strategy will work. The company is increasing its presence in China, eying the Indian market with a Bharti partnership, and now is apparently looking at the Russian market.

In other words, Wal-Mart is looking for above-average retail growth in emerging and re-energized markets abroad. Sounds pretty simple to me as a strategy. Of course, Wal-Mart will need to make sure its stores meet the needs of the customers and cultures in the countries where it intends to go.

As I've said before the "one size fits all" approach to international design and merchandising will flop for Wal-Mart. I have to believe that the world's largest retailer did this kind of research before entering international markets, even where it ended up failing.

A Wal-Mart international spokeswoman said that "We've been watching impressive growth and it has piqued our interest . . . we are definitely interested in the Russian market." OK, fine -- no problems there. But can Wal-Mart really make a go of it?

Can the world's largest retailer that bit off more than it could chew with other large-scale international operations also be eying India, China and Russia? Perhaps, although Wal-Mart also said that it was too early for any specific plans on how or where Wal-Mart might move into Russia.

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Last updated: February 13, 2012: 12:59 AM

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