Market News

Wal-Mart Exits Germany

Wal-Mart Stores Inc. has announced it is pulling out of Germany, selling its 85 supercentres to rival Metro Group. Explaining the move, the retail giant said that in the German marketplace it "would be difficult to obtain the scale and results we desire." Wal-Mart had experienced a number of difficulties during its eight-year stint in Germany including trouble securing prime real estate and a misunderstanding of German tastes and shopping habits, which contributed to a lack of profitability for the unit. Although terms of the deal were undisclosed, it is reported Wal-Mart will take a $1-billion pre tax loss on the sale. Source: Canadian Grocer E-Newsletter, July 29, 2006.