Why WalMart failed in germany...

Funny fact: WalMart went bancrupt in germany. They could never get a foot into the german market and then left. It was queite amusing. WalMart invested billions to get into the german market. They did not follow german customs but tried to force the american customs into the market here. They made each year dramatic losses and then closed in germany completly. Best example for that was, that WalMart placed guys at the cash point to put your stuff into bags. That way it goes faster. In USA thats normal. In germany thats seen as unacceptable. Nobody here wants someone random touch your goods. People here also don´t want be greeted at the entrance, nor do they want subsidize WalMarts slave workers with tax money.

For the first time WalMart had to compete in a real competition...and was mauled and stomped into the dirt in germany.

The following article sums it up quite good:

http://thetimchannel.wordpress.com/2012/11/18/why-walmart-failed-in-germany/

 

I'm sure Germany's $22 minimum wage had nothing to do with it.

*rolls eyes*

 

I'm sure WalMart had to know about the minimum wage going in.

 

In addition to sky high min wage, with payroll taxes close to 50% and VAT at 20%, German people have very little spendable income.

Def not a good decision by Walmart... but live and learn.

 

Germany has no minimum wage. It was just now put into effort and will start in 2015. So that argument is a nobrainer. Beside that, all other great german supermarkets like REWE, EDEKA, TEGUT and Aldi make gigantic profits. German people have a high spendable income.

The problem WalMart faced here was, that their business concept does not survive in a free market environment. Their business concept depends on subsidized slave workers.

Trying to force american customs on germans wasn´t helping either.

I don´t want be greeted when i enter a shop. It makes me feel controlled and uncomfortable.

I don´t want random people to touch the stuff i buy. Thats disgusting.

German workers do not accept to be treated like property here. WalMart made internal policies like "no relationships" at work. And workers kicked their ass for that.

 

I am no fan of wal-mart, but your stuff has already been touched by dozens of random people before you buy it, no matter where you get it.

 

Sorry, I was misinformed about the min wage in Germany. However, that makes the high taxes on their low salaries even more reason German people had no extra money to shop at Walmart.

Can't expect to sell non essentials to folks with little or no discretionary income

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No, because it becomes my stuff, when i have paid it. From then on nobody is allowed to touch it. Thats a cultural thing.

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Thats not true. Other german supermarkets like EDEKA are more expensive than WalMart and make gigantic profits. WalMart tried to catch people with cheap prices and failed because nobody accepted the american culture

 

Yeah, no doubt. Walmart pays about $22 an hour for about a dozen or so employees. No way they'd accept that.

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The problem was, Walmart only deals in mega profit for the select few and, sharing isn't in their corporate plan.

 

How do you think that stuff got onto the shelves and how many people do you think may have touched it without buying it? You really should sterilize your entire pantry just to be safe.

 

What about "its not accepted in german culture" did you not understand? Its same as not wearing shoes in japanese houses. It is a cultural thing. You ignore it-> you lose the market.

 

What part of disgusting doesn't apply to the "random" people who put those items out for you to purchase in the first place? If the sales person has to touch them to check you out, what difference does it make if they bag them for you?

 

i dont accept it. thats the difference. apparently most germans think like that since walmart mentioned it as one of the core problems they faced

 

I spent 10 years in Germany as a child and teen, and six as an adult. Needless to say, I was thrilled when Aldi opened here, just wish it had everything the German store had!

https://www.aldi-sued.de/de/

 

another desaster was the "greeter" wallmart placed at the entrance. Germans don't like that and many complained to feel harassed from that.

 

Haha. I have been to Berlin. Covered in American corporations. You guys have mcdonalds all over the place. Didnt give in to American culture my foot. Everyone speaks English and listens to rock music. You get around on English better there then in parts of London.

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True. Germans are a cold people who don't like not give service. Greetings, bagging purchases are too much for them.

 

Wow. And I'll bet you demanded they speak English to you, right?

 

thats wrong, those things are simply disgusting. They are fake. They get paid to greet me. Thats seen as dishonest here. That kind of fake friendliness is seen as pathetic here. When i enter a shop and someone gets paid to greet me, then i feel harassed. I don't want be bothered with such nonsense. I want go in, buy what i need and leave. its that simple.

Walmart did not get this and failed.

 

No, he was never in germany. If he would have been, he would know that most germans speak not one word of english. In berlin even more so, since most didnt even had it at school. Even in munich you are lost woth english when you leave the central tourist spots.

 

Cool.... have REWE, EDEKA, TEGUT and Aldi all give it a try here in the US and let us know how it goes for them.

 

Aldi is in USA expanding there and profitable. The others see no reason to expand further. They are highly profitable in germany. Why waste money like WalMart did?

Best story about walmart? They believed they are a big player and could push their way on the german market. They demanded to visit evry factory plant of their suppliers here without announcement to check quality, including some of the most renomated german brands...they were kicked out at the entrance door and the suppliers ended contracts to deliver goods to them.

 

Germany already had Aldi.

 

Aldi is a german corporation...what i mean is that aldi expanded to uSA and is sucessful there, while Walmart failed miserable in germany.

 

Marcus,
You are learning on here from PFs righty American posters that there is a certain segment of our society that has a superiority complex when it comes to culture and customs. Thanks for posting this about Walmart in Germany, interesting reading and something I didn't know about.

 

We can whine and crow all we want about the German min wage or taxation system but the bottom line is that Germany is kicking our butts when in comes to surviving in the new economy.