Duessel6969 wrote:
Hi,
Hope Wal-Mart in CR will face the same problems than Wal-Mart in Germany/Switzerland/France. They closed all the stores, because of poor customer service; and their stuff wsan't even cheaper!
Well, it will be very interesting.
Duessel
Wal-Mart did not close their stores in Germany they sold them. Why? A business decision. They were not making money and a turnaround was not in sight. Contributing factor to the selling of the German operation a desire to be cash heavy to place what became a successful bid to take over a major retail operation in China. Same reason they sold the Korean operation. Am not aware of any Wal-Mart operation at any time in France are Switzerland.
A business reality: people do not shop a discount retailer for service they shop for price and convenient one-stop shopping. What makes Wal-Mart a successful operation is their ability to acquire merchandise in massive quantities at economical prices and then used there worldwide transportation system to get that merchandise to the shopper cheaper than anyone else.
Yes quite often the competition sales at prices that are comparable to Wal-Mart's. Where the massive purchasing power and self owned transportation system comes in is where the competition is selling an item for a $1.96 and Wal-Mart is selling the same item for a $1.96 the competitor's profit is $.45 Wal-Mart profit would be $.75. As in any business it's not price its profit.
Lee