Product details

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Abstract

Wal-Mart the world''s largest retailer was growing at a rapid pace with more than 6,100 stores worldwide, their net sales reached more than US$312.4 billion for the year ending 31 January 2006. Wal-Mart started aggressively pursuing international expansion in 1990, but this strategy was apparently not applicable to the country of South Korea. The world''s largest retailer was pulling out of the peninsula, where it''s wholly owned ''Wal-Mart Korea'' arm had struggled since 1998 as they failed to attract local customers. The management said that it had agreed to sell its 16 South Korean outlets to Shinsegae, a local retailer, for US$882 million after Wal-Mart incurred a loss of US$10.58 million in 2005, on sales of US$802 million. Shinsegae was South Korea''s largest discount store chain and also used to run the country''s third-ranked department store chain E-Mart. This case gives an idea about the failed strategy of Wal-Mart, globally the largest retailer.
Location:
Industry:
Other setting(s):
2006

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Abstract

Wal-Mart the world''s largest retailer was growing at a rapid pace with more than 6,100 stores worldwide, their net sales reached more than US$312.4 billion for the year ending 31 January 2006. Wal-Mart started aggressively pursuing international expansion in 1990, but this strategy was apparently not applicable to the country of South Korea. The world''s largest retailer was pulling out of the peninsula, where it''s wholly owned ''Wal-Mart Korea'' arm had struggled since 1998 as they failed to attract local customers. The management said that it had agreed to sell its 16 South Korean outlets to Shinsegae, a local retailer, for US$882 million after Wal-Mart incurred a loss of US$10.58 million in 2005, on sales of US$802 million. Shinsegae was South Korea''s largest discount store chain and also used to run the country''s third-ranked department store chain E-Mart. This case gives an idea about the failed strategy of Wal-Mart, globally the largest retailer.

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Location:
Industry:
Other setting(s):
2006

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