Walmart International locations. Former locations are shown in red.
Walmart's international operations currently[when?] comprise 4,263 stores and 660,000 workers in 15 countries outside the United States.[89] There are wholly owned operations in Argentina, Brazil, Canada, and the UK. With 2.1 million employees worldwide, the company is the largest private employer in the U.S. and Mexico, and one of the largest in Canada.[5] In the financial year 2010, Walmart's international division sales were $100 billion, or 24.7 percent of total sales.[10]
Walmart has operated in Canada since its acquisition of 122 stores comprising the Woolco division of Woolworth Canada, Inc in 1994. As of July 2010, it operates over 300 locations (including 100 Supercentres) and employs 82,000 Canadians, with a local home office in Mississauga, Ontario.[90] Walmart Canada's first three Supercentres (spelled as in Canadian English) opened on November 8, 2006, in Hamilton, London, and Aurora, Ontario. The 100th Canadian Supercentre opened on July 10, 2010, in Victoria, BC. In 2010, Walmart Canada Bank was introduced in Canada with the launch of the Walmart Rewards MasterCard
Walmart In Montreal, Canada - Mall Entrance
In the mid-1990s Wal-Mart tried with a large financial investment to get a foothold in the German retail market. In 1997 Wal-Mart took over the supermarket chain Wertkauf with its 21 stores for DEM750 million (€375 million)[92] and in 1998 Wal-Mart took over 74 Interspar stores for DEM1.3 billion (€750 million).[93][94]
The German market at this point was an oligopoly with high competition among the companies which also used a similar low price strategy as Wal-Mart. Because of this, Wal-Mart's low price strategy yielded no competitive advantage. Also Wal-Mart's corporate culture was not viewed positively among employees and customers in Germany, particularly Wal- Mart's "statement of ethics", which restricted relationships between employees and led to a public discussion in the media, resulting in a bad reputation for Wal-Mart among customers.[95][96]
In July 2006, Wal-Mart announced its withdrawal from Germany due to sustained losses. The stores were sold to the German company Metro during Wal-Mart's fiscal third quarter.[97][98] Wal-Mart did not disclose its losses from its ill fated German investment, but they were estimated around €3 billion.[99]
Bompreço in Natal, Brazil.
In 2004, Walmart bought the 116 stores in the Bompreço supermarket chain in northeastern Brazil. In late 2005, it took control of the Brazilian operations of Sonae Distribution Group through its new subsidiary, WMS Supermercados do Brasil, thus acquiring control of the Nacional and Mercadorama supermarket chains, the leaders in the Rio Grande do Sul and Paraná states, respectively. None of these was rebranded. As of April 2010, Wal-Mart operates 64 Super-Bompreço stores, 33 Hyper-Bompreço stores. It also runs 45 Wal-Mart Supercenters, 24 Sam's Club stores, and 101 Todo Dia stores. With the acquisition of Bompreço and Sonae, Walmart was in 2010 the third largest supermarket chain in Brazil, behind Carrefour and Pão de Açúcar.[100] Wal-Mart Brasil, the operating company, has its head office in Barueri, São Paulo State, and regional offices in Curitiba, Paraná; Porto Alegre, Rio Grande do Sul; Recife, Pernambuco; and Salvador, Bahia.[101]
In November 2006, the company announced a joint venture with Bharti Enterprises to open retail stores in India. As foreign corporations were not allowed to directly enter the retail sector in India, Walmart operated through franchises and handled the wholesale end.[102] The partnership involves two joint ventures; Bharti manages the front end involving opening of retail outlets, while Walmart takes care of the back end, such as cold chains and logistics. Bharti Walmart operates stores in India under the brand name "Best Price Modern Wholesale".[103] The first store opened in Amritsar in May 2012. On September 14, 2012, the Government of India approved 51 percent FDI in multi-brand retails, subject to approvals by individual states, effective September 20, 2012.[104][105] In an interview with The Wall Street Journal, Wal- Mart Stores Inc President and CEO, Asia Scott Price, stated that Walmart would be capable of opening stores in India within a time frame of 2 years. Price also said that the company expects to continue its partnership with Bharti Enterprises in operating Best Price Modern Wholesale.[106] Expansion into India faced some significant problems. In November 2012, Walmart admitted to spending $25 million lobbying Congress[107] - lobbying is conventionally
considered bribery in India.[108] Walmart is conducting an internal investigation into potential violations of the Foreign Corrupt Practices Act.[109] Bharti Walmart suspended a number of employees, which are rumored to include its CFO and legal team, to ensure "a complete and thorough investigation."[110] The suspension focused attention on Bharti Walmart as a part of the broader debate surrounding the desirability of allowing multi-brand FDI into India.[111][112] The September 20, 2012 approval of FDI was challenged by opposition parties and narrowly passed in a contentious parliamentary vote in early December.[113][114]
Walmart's UK subsidiary, Asda
Sales in 2006 for Walmart's UK subsidiary, Asda (which retains the name it had before acquisition by Walmart), accounted for 42.7 percent of sales of Walmart's international division. In contrast to the US operations, Asda was originally and still remains primarily a grocery chain, but with a stronger focus on non-food items than most UK supermarket chains other than Tesco. As of 2011, Asda had 523 stores, including 147 from the 2010 Netto acquisition. In addition to small suburban Asda stores, larger stores are branded Asda Walmart Supercentres, as well as Asda Superstores and Asda Living.[6][115][116]
In addition to its wholly owned international operations, Walmart has joint ventures in China and several majority-owned
subsidiaries. Walmart's majority-owned subsidiary in Mexico is Walmex. In Japan, Walmart owns 100 percent of Seiyu
as of 2008.[97][117] Additionally, Walmart owns 51 percent of the Central American Retail Holding Company (CARHCO),
consisting of more than 360 supermarkets and other stores in Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica.[118]
In 2008, Walmart named German retailing veteran Stephan Fanderl as the president of Walmart Emerging Markets-East in an effort to, "explore retail business opportunities in Russia and neighboring markets." The market is estimated to be worth more than US$140 billion per year in food sales alone.[119]
In January 2009, the company acquired a controlling interest in the largest grocer in Chile, Distribución y Servicio D&S SA.[120] In 2010 the company was renamed Walmart Chile.[121]
On September 28, 2010, Walmart announced it would buy Massmart Holdings Ltd. of Johannesburg, South Africa in a deal worth over $4 billion, giving the company its first stores in Africa.[15]
In December 2011, Walmart neither confirmed nor denied speculation that it was eyeing opportunities in Pakistan. "We have not made any announcements concerning Pakistan," said Megan Murphy, Walmart's international corporate affairs manager in an e-mail. Walmart does not comment on market entry speculation, she added. Murphy, however, said their priorities are to "concentrate on the markets where we already have operations and look for growth opportunities in markets where customers want to see us and where it makes sense for our long-term growth."[122]
In February 2012, Walmart announced that the company raises its stake to 51 percent in Chinese Online Supermarket Yihaodian to tap rising consumer wealth and help the company offer more product. The stake expansion is subject to Chinese government regulatory approval.[123]
An April 2012 investigative report in The New York Times reported that a former executive of Walmart de Mexico alleged that, in September 2005, Walmart de Mexico had paid bribes via local fixers called gestores to officials throughout Mexico in order to obtain construction permits, information, and other favors. Walmart investigators found credible evidence that Mexican and American laws had been broken. Concerns were raised that Walmart executives in the United States "hushed up" the allegations. Reportedly, bribes were given to rapidly obtain construction permits, which gave Walmart a substantial advantage over its business competitors.[124] A follow-up investigation by The New York Times, published December 17, 2012, revealed evidence that regulatory permission for siting, construction, and operation of nineteen stores had been obtained through bribery. There was evidence that a bribe of $52,000 was paid to change a zoning map, which enabled the opening of a Walmart store a mile from a historical site in San Juan Teotihuacán.[125] After the initial article was released, Walmart released a statement denying the allegations and describing its anti- corruption policy. While an official Walmart report states that they found no evidence of corruption, the article alleges that previous internal reports had indeed turned up such evidence before the story became public.[126] Forbes magazine contributor, Adam Hartung, also alluded that the bribery scandal was a reflection of Walmart's "serious management and strategy troubles," stating, "[s]candals are now commonplace ... [e]ach scandal points out that Walmart's strategy is harder to navigate and is running into big problems."[127]
As of December 2012, internal investigations are ongoing into possible violations of the Federal Corrupt Practices Act.[128] Walmart has invested $99 million in the internal investigations, which have expanded beyond Mexico to implicate operations in China, Brazil, and India.[129][130] The case has added fuel to the debate as t
Walmart International locations. Former locations are shown in red.Walmart's international operations currently[when?] comprise 4,263 stores and 660,000 workers in 15 countries outside the United States.[89] There are wholly owned operations in Argentina, Brazil, Canada, and the UK. With 2.1 million employees worldwide, the company is the largest private employer in the U.S. and Mexico, and one of the largest in Canada.[5] In the financial year 2010, Walmart's international division sales were $100 billion, or 24.7 percent of total sales.[10]Walmart has operated in Canada since its acquisition of 122 stores comprising the Woolco division of Woolworth Canada, Inc in 1994. As of July 2010, it operates over 300 locations (including 100 Supercentres) and employs 82,000 Canadians, with a local home office in Mississauga, Ontario.[90] Walmart Canada's first three Supercentres (spelled as in Canadian English) opened on November 8, 2006, in Hamilton, London, and Aurora, Ontario. The 100th Canadian Supercentre opened on July 10, 2010, in Victoria, BC. In 2010, Walmart Canada Bank was introduced in Canada with the launch of the Walmart Rewards MasterCard Walmart In Montreal, Canada - Mall EntranceIn the mid-1990s Wal-Mart tried with a large financial investment to get a foothold in the German retail market. In 1997 Wal-Mart took over the supermarket chain Wertkauf with its 21 stores for DEM750 million (€375 million)[92] and in 1998 Wal-Mart took over 74 Interspar stores for DEM1.3 billion (€750 million).[93][94] The German market at this point was an oligopoly with high competition among the companies which also used a similar low price strategy as Wal-Mart. Because of this, Wal-Mart's low price strategy yielded no competitive advantage. Also Wal-Mart's corporate culture was not viewed positively among employees and customers in Germany, particularly Wal- Mart's "statement of ethics", which restricted relationships between employees and led to a public discussion in the media, resulting in a bad reputation for Wal-Mart among customers.[95][96]In July 2006, Wal-Mart announced its withdrawal from Germany due to sustained losses. The stores were sold to the German company Metro during Wal-Mart's fiscal third quarter.[97][98] Wal-Mart did not disclose its losses from its ill fated German investment, but they were estimated around €3 billion.[99] Bompreço in Natal, Brazil.In 2004, Walmart bought the 116 stores in the Bompreço supermarket chain in northeastern Brazil. In late 2005, it took control of the Brazilian operations of Sonae Distribution Group through its new subsidiary, WMS Supermercados do Brasil, thus acquiring control of the Nacional and Mercadorama supermarket chains, the leaders in the Rio Grande do Sul and Paraná states, respectively. None of these was rebranded. As of April 2010, Wal-Mart operates 64 Super-Bompreço stores, 33 Hyper-Bompreço stores. It also runs 45 Wal-Mart Supercenters, 24 Sam's Club stores, and 101 Todo Dia stores. With the acquisition of Bompreço and Sonae, Walmart was in 2010 the third largest supermarket chain in Brazil, behind Carrefour and Pão de Açúcar.[100] Wal-Mart Brasil, the operating company, has its head office in Barueri, São Paulo State, and regional offices in Curitiba, Paraná; Porto Alegre, Rio Grande do Sul; Recife, Pernambuco; and Salvador, Bahia.[101]In November 2006, the company announced a joint venture with Bharti Enterprises to open retail stores in India. As foreign corporations were not allowed to directly enter the retail sector in India, Walmart operated through franchises and handled the wholesale end.[102] The partnership involves two joint ventures; Bharti manages the front end involving opening of retail outlets, while Walmart takes care of the back end, such as cold chains and logistics. Bharti Walmart operates stores in India under the brand name "Best Price Modern Wholesale".[103] The first store opened in Amritsar in May 2012. On September 14, 2012, the Government of India approved 51 percent FDI in multi-brand retails, subject to approvals by individual states, effective September 20, 2012.[104][105] In an interview with The Wall Street Journal, Wal- Mart Stores Inc President and CEO, Asia Scott Price, stated that Walmart would be capable of opening stores in India within a time frame of 2 years. Price also said that the company expects to continue its partnership with Bharti Enterprises in operating Best Price Modern Wholesale.[106] Expansion into India faced some significant problems. In November 2012, Walmart admitted to spending $25 million lobbying Congress[107] - lobbying is conventionally
considered bribery in India.[108] Walmart is conducting an internal investigation into potential violations of the Foreign Corrupt Practices Act.[109] Bharti Walmart suspended a number of employees, which are rumored to include its CFO and legal team, to ensure "a complete and thorough investigation."[110] The suspension focused attention on Bharti Walmart as a part of the broader debate surrounding the desirability of allowing multi-brand FDI into India.[111][112] The September 20, 2012 approval of FDI was challenged by opposition parties and narrowly passed in a contentious parliamentary vote in early December.[113][114]
Walmart's UK subsidiary, Asda
Sales in 2006 for Walmart's UK subsidiary, Asda (which retains the name it had before acquisition by Walmart), accounted for 42.7 percent of sales of Walmart's international division. In contrast to the US operations, Asda was originally and still remains primarily a grocery chain, but with a stronger focus on non-food items than most UK supermarket chains other than Tesco. As of 2011, Asda had 523 stores, including 147 from the 2010 Netto acquisition. In addition to small suburban Asda stores, larger stores are branded Asda Walmart Supercentres, as well as Asda Superstores and Asda Living.[6][115][116]
In addition to its wholly owned international operations, Walmart has joint ventures in China and several majority-owned
subsidiaries. Walmart's majority-owned subsidiary in Mexico is Walmex. In Japan, Walmart owns 100 percent of Seiyu
as of 2008.[97][117] Additionally, Walmart owns 51 percent of the Central American Retail Holding Company (CARHCO),
consisting of more than 360 supermarkets and other stores in Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica.[118]
In 2008, Walmart named German retailing veteran Stephan Fanderl as the president of Walmart Emerging Markets-East in an effort to, "explore retail business opportunities in Russia and neighboring markets." The market is estimated to be worth more than US$140 billion per year in food sales alone.[119]
In January 2009, the company acquired a controlling interest in the largest grocer in Chile, Distribución y Servicio D&S SA.[120] In 2010 the company was renamed Walmart Chile.[121]
On September 28, 2010, Walmart announced it would buy Massmart Holdings Ltd. of Johannesburg, South Africa in a deal worth over $4 billion, giving the company its first stores in Africa.[15]
In December 2011, Walmart neither confirmed nor denied speculation that it was eyeing opportunities in Pakistan. "We have not made any announcements concerning Pakistan," said Megan Murphy, Walmart's international corporate affairs manager in an e-mail. Walmart does not comment on market entry speculation, she added. Murphy, however, said their priorities are to "concentrate on the markets where we already have operations and look for growth opportunities in markets where customers want to see us and where it makes sense for our long-term growth."[122]
In February 2012, Walmart announced that the company raises its stake to 51 percent in Chinese Online Supermarket Yihaodian to tap rising consumer wealth and help the company offer more product. The stake expansion is subject to Chinese government regulatory approval.[123]
An April 2012 investigative report in The New York Times reported that a former executive of Walmart de Mexico alleged that, in September 2005, Walmart de Mexico had paid bribes via local fixers called gestores to officials throughout Mexico in order to obtain construction permits, information, and other favors. Walmart investigators found credible evidence that Mexican and American laws had been broken. Concerns were raised that Walmart executives in the United States "hushed up" the allegations. Reportedly, bribes were given to rapidly obtain construction permits, which gave Walmart a substantial advantage over its business competitors.[124] A follow-up investigation by The New York Times, published December 17, 2012, revealed evidence that regulatory permission for siting, construction, and operation of nineteen stores had been obtained through bribery. There was evidence that a bribe of $52,000 was paid to change a zoning map, which enabled the opening of a Walmart store a mile from a historical site in San Juan Teotihuacán.[125] After the initial article was released, Walmart released a statement denying the allegations and describing its anti- corruption policy. While an official Walmart report states that they found no evidence of corruption, the article alleges that previous internal reports had indeed turned up such evidence before the story became public.[126] Forbes magazine contributor, Adam Hartung, also alluded that the bribery scandal was a reflection of Walmart's "serious management and strategy troubles," stating, "[s]candals are now commonplace ... [e]ach scandal points out that Walmart's strategy is harder to navigate and is running into big problems."[127]
As of December 2012, internal investigations are ongoing into possible violations of the Federal Corrupt Practices Act.[128] Walmart has invested $99 million in the internal investigations, which have expanded beyond Mexico to implicate operations in China, Brazil, and India.[129][130] The case has added fuel to the debate as t
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