Wednesday, March 12, 2008

Is Wal-Mart considering a UK pull-out?

The Telegraph says that Wal-Mart has recently considered (but rejected for now) a sale of their UK Asda division:
... Wal-Mart president Lee Scott became so dismayed at the failure to crack the UK market and the constraints on future growth that last year he ordered a strategic review that could have seen Wal-Mart float a minority stake in Asda or even pull out of the UK entirely.

According to sources the strategic review has - for now - been shelved. Asda refused to comment.

Wal-Mart has recently posted better-than-expected results, but a year ago things were looking a bit bleaker. That may have some bearing on the question. Still, added to the German and Korean pull-outs, and the continuing poor performance in Japan, it raises questions about Wal-Mart's international strategy.

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