Wal-Mart Denies Plan for Germany Stores
by April 23, 2001 5:41 pm 73 views
Wal-Mart Stores Inc. had no plan to open 50 new stores in Germany by the end of 2002 as reported by newspapers around the world, Jose Gomez, a spokesman for the international division of the world’s largest retailer.
Gomez said Allan Leighton, the former head of Wal-Mart’s European operations, casually mentioned a year ago that he would like to see that many new stores open in Germany by that date, but the company never initiated such a plan of expansion.
“It was a general passing statement” that Leighton made to a German newspaper, Gomez said.
Wal-Mart plans to open two stores in Germany this year. Further plans are unavailable at this time.
A spokeswoman for Wal-Mart said news reports that initiated with The Wall Street Journal about the company “scrapping” expansion plans in Germany were “inaccurate.”
Instead, Wal-Mart is concentrating on renovating existing stores in Germany, said Maria Rodriguez, a company spokeswoman.
Wal-Mart first entered the German market in 1997 with the purchase of the 21-store Wertkauf hypermarket chain. Wal-Mart now has 94 stores in Germany. The discount giant has renovated 24 stores in that country last year.
Analysts believe Wal-Mart is losing about $200 million per year in Germany, the only country where the Bentonville-based company has not gained a firm foothold.