NYT: Wal-Mart Finds That Its Formula Doesn’t Fit Every Culture

[DeepModem Mom]

Wal-Mart Finds That Its Formula Doesn’t Fit Every Culture
By MARK LANDLER and MICHAEL BARBARO
Published: August 2, 2006

....Mr. Kögel, 54, confessed that he never bought groceries at Wal-Mart. Food is cheaper at German discount chains. He also does not visit this store often, because it is on the edge of town and he does not own a car. His one purchase for the day was tucked under his arm: a neck pillow.

Shoppers like Roland Kögel help explain why Wal-Mart raised the white flag in Germany, the site of the company’s first foray into Europe.

After nearly a decade of trying, Wal-Mart never cracked the country — failing to become the all-in-one shopping destination for Germans that it is for so many millions of Americans. Wal-Mart’s problems are not limited to Germany. The retail giant has struggled in countries like South Korea and Japan as it discovered that its formula for success — low prices, zealous inventory control and a large array of merchandise — did not translate to markets with their own discount chains and shoppers with different habits.

Over all, Wal-Mart is still expanding outside the United States, particularly in markets where it entered by acquiring a strong retailer. Still, given Wal-Mart’s formidable record at home, the company’s recent setbacks have exposed a rare vulnerability overseas.

Some of Wal-Mart’s problems stem from hubris, a uniquely powerful American enterprise trying to impose its values around the world. At Wal-Mart’s headquarters in Bentonville, Ark., however, the message from these missteps is now registering loud and clear....

http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html?_r=1&oref=login&pagewanted=all

[soothsayer]

1. It doesn't fit mine, either.

[marmar]

4. You can say that again...

I'm feeling very Western European these days.

[Eurobabe]

2. Aldi and Lidl handed Wal-Mart a can of whoop ass

in Germany. Their stores (Wal-Mart) are kind of dirty and disorganized, the one experience I had in Munich made me never step foot in it again.

[sgxnk]

3. in mexico

as a contrast, walmart is doing very well

the ones i saw were always packed

as was sam's club