Wal-Mart in Germany: The Retailing Challenges
|
Code : COM0084
|
Region : Germany
|
||||
 |
 |
 |
 |
||
|
Wal-Mart in Germany Wal-Mart entered the German retail market in December 1997 with the purchase of 218 stores of the Wertkauf hypermarket chain. As Wal-Mart aimed to be a dominant player in European retailing, it focused on Germany that was one of the vital markets accounting for 24% of the total European retail sales in the mid-1990s. Richard Perks, Senior European Retail Analyst, commented, "Germany is the leading economic force in the European Union and one of the largest economies in the world and many Germany-based retailers feature among the leading European retail groups. An interesting point in the German market is that it is dominated by discounters, with voluntary groups also playing an important role... The Retailing Challenges in Germany The retailing industry in Germany is unique in itself and German laws and regulations shelter small storekeepers with strict limits on competition. The retail sector in Germany has a high level of control through government legislation, trade associations and trade unions. The fair-trading and antitrust laws of the country impose restrictions on the pricing policies of the retailers and they are prohibited from selling goods below the cost price. The advertising language in the country is also strictly regulated. The rigid control of the retail sector restricts the flexibility required to respond to the changes in a dynamic market environment. Concentration of the German retail market has led to the top ranking retailers accounting formost of the retail sales in the country. Germany is also considered to have a high concentration of retailers andmargins for some products in the country, including that of groceries, are below 1%... |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
