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Wal-Mart's German Misadventure |
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"I don't think that Wal-Mart did their homework as well as they should have. Germany is Europe's most price-sensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment." - Steve Gotham, Retail Analyst - Verdict Retail Consulting, in October 2002.1 "We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed." - John Menzer, Head - Wal-Mart International, in December 2001.2 German Blues
Wal-Mart also ran into series of problems with German regulatory authorities for its pricing strategies and faced considerable opposition from German suppliers to its centralized distribution system. It had problems with its German workers too. However, Wal-Mart was not the only retailer to do badly in Germany in the 1990s.
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1] Pommereau, Isabelle de, Wal-Mart lesson: Smiling service won't win Germans, www.csmonitor.com, October 17, 2002. |
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