Wal-Mart gets “out-Wal-Marted”, pulls out of German market

After struggling for nine years to make headway in Germany the American based super discount store Wal-Mart has called it quits.

The move comes two months after the hypermarket chain pulled out of South Korea sighting similar problems. While Wal-Mart has attempted to spread its high-volume, low-cost model in international environments, they have yet to reap the benefits they found in the American culture.

Vice chairman of Wal-Mart stores, Michael Duke, said "It has become increasingly clear that in Germany's business environment it would be difficult for us to obtain the scale and results we desire.” At a loss of over $1 billion it became clear that Germany was unwilling to participate in the chain’s methodology.

Upon their arrival in Germany the discount chain, started by Sam Walton, was forced to raise prices on food items that regulators felt were detrimental to small shopkeepers. No longer able to capitalize on a philosophy that has found huge success stateside, Wal-Mart could not compete with Metro, the country’s largest retail chain.

An analyst at Cantor Viewpoint in New York, Jon Jacobs, summed up his belief in what happened in Germany, “Shoppers there are very price conscious and the competition essentially 'out-Wal-Marted' Wal-Mart."

Duke continued the spin by stating, “This sale positions us to increase our focus on the markets where we can achieve our objectives.”

The 85 outlets Wal-Mart operated in Germany will be sold to rival Metro.