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How Walmart Tremendously Failed to Enter the German Market in Two Weeks

Walmart, renowned for its global success, attempted to enter the German market in 1997 by acquiring two local retail chains. However, this venture ended in disappointment, prompting Walmart to exit Germany in 2006 due to substantial financial losses.

Store on fire

There are five main reasons why

  1. They tried to sell things for very low prices to attract customers, but German courts said they couldn't, and they had to raise their prices.

  2. Walmart didn't understand how Germans like to be treated when they shop. Germans don't like it when strangers are too friendly. But Walmart tried to make its employees act like friends with customers, which felt strange to Germans.

  3. Walmart had some weird rules for its workers in Germany. They had to do exercises and chant "Walmart" at the start of their shifts. They also couldn't date each other, and they had to tell each other if they broke the rules. German courts didn't like these rules and told Walmart to stop.

  4. Walmart didn't get along with German unions. These unions help workers and they didn't like how Walmart treats its employees. Walmart seemed more focused on making money than treating its workers well.

  5. Walmart didn't make much profit in Germany. They only controlled a small part of the market, and their profit was very low. So, instead of staying and losing more money, Walmart decided to leave Germany in 2006.

In the end, Walmart's failure in Germany shows that it's important to understand a country's people and culture before doing business there. Respecting workers and customers is key to success in any market.

What Should A Company Do Before Entering A New Country?

When expanding their business to other countries, companies must collaborate with people in new places. This means making friends and trying to improve the local people's lives, regardless of the company's financial situation or its performance at home.

When companies enter new markets, they need to remember that what works in one country might not work in another. Each place has its own way of doing things, and it's important to understand and respect that. If a company doesn't do this, they might have problems, like what happened with Walmart in Germany.

Tailor3D focuses on helping other businesses get into the European market smoothly. We know how things work in Europe, like what people like to buy, the rules they have to follow, and the little differences in how they do things. Whether a business is from Europe or the United States, Tailor3D gives them helpful advice and support that's just right for them.

Tailor3D also helps businesses make good friends with the local community. By getting to know customers, suppliers, and other important people, businesses can earn trust and respect in the new market. Tailor3D knows that being respectful and talking to people in the right way is really important for making these connections.

By using Tailor3D's knowledge and help, companies can avoid problems, find new opportunities, and grow successfully in the European market.



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