12 February 2002
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The first 'real' Wal-Mart
is a flop? US retail giant continues to miss the goal in Germany Wal-Mart's first 'real' superstore in Germany is not successful. The Pattensen store, which was purpose built by Wal-Mart, is apparently too large for its location. Turnover expectations have not been met by the 11,000 m2 hypermarket, says Germany's leading food industry weekly Lebensmittelzeitung.
Of the start up crew of 170 employees, 12 have already been laid off. Although management refuses to comment on it, observers say that this is because of the poor performance of the store. Wal-Mart has found it difficult to export its American superstore concept to Germany. Local competitors such as Metro's hypermarket chain Real have been quite successful and Wal-Mart's logistics have apparently not functioned in a satisfactory way. In Germany, the Wal-Mart workers are well organised in UNI Commerce affiliate Ver.di. Within the company, the workers and their trade union have encountered many problems with the enterprise, which is known to be a bad employer in its home markets in the United States. Wal-Mart has, among other things, refused to sign the German commerce sector collective agreements. The company has also at times made it difficult for the worker representation structures to operate and communicate efficiently. |