In February 2010, Walmart Canada announced that they would open 35 to 40 supercentres in 2010. In these supercentres, this project includes new stores, store expansions, remodel and even relocating the existing stores.
For store expansions, Walmart Canada is going to invest its first sustainable refrigerated distribution center. The center will create trade and construction jobs, which is 1400 jobs in total. Moreover, it is expect to be one of the most energy-efficient distribution facilities.
In October, 2010 Walmart announced that it was conducting due diligence on Massmart, which is the leading retailer in South Africa. First it was report that Walmart was going to offer a huge among of money to buy Massmart directly, but afterward it also been say that Walmart would offer for only a majority controlling share (more than 50% but less than 100%) so they would have a majority control on Massmart. If either of these plans were achieved, Walmart would be ahead of its European competitors, which don’t have any stores in Africa.
So, these are countries that Walmart had already plant their branches. And, now come to how Walmart adopt or work to be success in these countries.
7 countries :
One of the most successful. Walmart applied the same model as they use in US to Mexico, which is “Everyday low price”. But people in Mexico do not use much of the car, so they can’t buy large volume of goods. Also, the thing that is different from American is they like to buy just a small potion of fresh food for each day. This is why sizes of Walmart in Mexico are smaller than in US, but many branches. WAL-MART DE MÉXICO (WALMEX) THE SUBSIDIARY OF WALMART
Walmart had struggle a lot to win the heart of customer in China because Chinese like fresh food. I would say “very fresh” because the meaning of ‘fresh’ for Chinese is that they can pick it out by themselves and watch it wriggle. However, Walmart
originality is American-style, which is wrapped in plastic and put in freshness-dated containers. So, Walmart have brought wet markets indoor. So, the key success in China is to go native.
The early idea of “Everyday low price” does not work in Japan because Japan very different from US. They tend to prefer quality over low prices, which contrast with Wal-Mart’s plan. low price for Japanese means low quality. Japanese likescustomized product. Their culture is like to purchase fresh product rather than pre-packaged goods. So, Walmart changed their supplier to local, but this also takes avery long time for Walmart to get into the right track because in Japan, relationship with foreign is difficult because they are very nationalism Seiyu England England has a very alike culture as US Walmart offer things at affordable and reasonable prices and superior customer service and convenience. Asda India Indian do not wish to travel for more than 15 minutes to make their monthly purchases said Raj Jain, president of Walmart India. They also prefer local goods rather than import goods especially food products. This made Walmart to build multiple stores to be able to remain closer to their target customers. Also, they have to source 90-95% of the products locally.
Best-price Latin America Brazil In Brazil, Everyday low price is also successful. With the aggressive pricing strategy, thousands of consumers are ready to empty the shelves and Brazil customer also like a large variety of products which is just like Walmart’ aim.
Walmart Brasil South Africa People here are most familiar with the “ promotional high-low price” model. High-low pricing is like when an item is set in high price, and when its popularity is low, it will be sell in discount or sales. And as Massmart mostly located in Johannesburg which are Africa richest city and the average purchasing power of their citizen is more than the average of citizen in Paris, Singapore and Hong Kong. So, Walmart had adjusted with this thinking for their ‘everyday low price’ model.Massmart