Wal-Mart Changes Tactics to Meet International Tastes
Changes Tactics to
Meet International Tastes
In Sao Paulo Wal-Mart depends on suppliers or contract truckers to deliver most of its goods
In Brazil stores process 300 deliveries daily, but only 7 a day at U.S.
The biggest issue is shipping on time and getting it on the shelf
Built warehouse in Argentina and Brazil to reduce distribution problems.
Local suppliers have difficulty meeting Wal-Mart specifications
Wal-Mart doesn't get special deals from domestic suppliers
Retail analysts citing that Wal-Mart losing $20-$30 in Brazil
Wal-Mart Argentina concede losing money but the perfomance meets expectations. The company expect profit in 1999.
Consumer sees similar quality and price between Carrefour and Wal-Mart
Carrefour drives hardbargains with suppliers, so they can afford to sell at low prices
Even Carrefour only has 22,000 items while Wal-Mart carries 58,000
Wal-Mart failed to analyze before expand their business in South America
Import unusual things to South America
Brought stock-handling equipment that didn't work with standardized local pallets
Slow to adapt Brazil's fast changing credit culture
Failed to attract customers with Sam's Club Membership
International operation accounted for 4.8% of Wal-Mart's 1996 sales
Most international revenue comes from Canada (120 stores) & Mexico (390 stores)
Mr. Glass expect international growth
Competitors were Grup Pao de Acucas SA (Brazil) & Carrefour SA (France)
Confident that Wal-Mart will become dominant retailer in South America
Targeting China and Indonesia
Dwindling opportunities at the U.S.
Muhammad Shofyan Akbar Surya