Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0084

Year : 2005

Industry : Retailing

Region : Germany

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:With more than 5,200 stores and annual sales of 285.2 billion in the fiscal year ending January 31st 2005, Wal-Mart Stores Inc. (Wal-Mart) is the largest retailer in the world. However, by the end of 2004, it was able to capture only 2% of the food sales market in Germany. The total number of stores of Wal-Mart in Germany reduced from 95 Supercentres in 2002 to 91 in 2004, which is one-fifth of its rival Kaufland - a leading hypermarket chain in the country.

Wal-Mart is falling behind its rivals in competition and is only amarginal player in the German retail market. Kay Hafner, president and managing director of Wal-Mart Germany (the German subsidiary of Wal-Mart), said, "We are pushing ahead in a turmoil-shaken market where overall consumer spending is on the decline." Wal-Mart Germany has planned to concentrate on increasing the efficiency in the distribution system and on building relationships with suppliers to reinforce its retail network in the country.