Citation
Walmart Germany Case Study (1997-2006)
TL;DR
$1.9B acquisition of 95 stores (1997)
Documents $1B+ loss from philopatry - importing U.S. retail model to Germany without adaptation. Mandatory smile policies violated German labor law, big-box format mismatched dense cities, 95 stores couldn't compete with Aldi's 4,000+. Nine years of losses before exit. Primary cautionary tale for migration without adaptation.
Key Findings from researchers (2006)
- $1.9B acquisition of 95 stores (1997)
- Ver.di union lawsuits over mandatory smile policy
- 1.1% market share vs Aldi 18%, Lidl 12%
- $1B+ cumulative operating losses
- Sold 85 stores to Metro AG for $500M (2006)