10 March 2000
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Wal-Mart makes bigger
than expected losses in Germany
The downhill continues for Wal-Mart in Germany. Last year's losses were 400 Million German Marks or almost 200 Million Dollars, against a calculated 100 Million German Marks. The turnover was 5.5 Billion German Marks. This was reported by the business magazine Capital in its latest issue. Wal-Mart's increasing problems have been almost daily news in the German press. The company's workers and their trade unions, HBV and DAG, are growing tired of the deteriorating labour relations approach. We don't want to be treated as cheerleaders, they are beginning to say. A problem for Wal-Mart is also that all its stores are not up to normal German standards. To bring them up to the necessary levels will be very expensive. Also, the famous logistics are not working as they should, partly because Wal-Mart is paying so poor wages that it does not get qualified warehouse staff.
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