Nope. Not what you might imagine. Nothing to do with the middle east.This is a reference to the fact that Wal-Mart is pulling out of Germany. It has been making losses for quite some time and finding the competition from locals ALDI and LIDL to be intense and sustained.
This is interesting on 2 levels. First I was talking about this just yesterday with Al (of San Diego diary fame) and we were pondering if ALDI and LIDL could ever overcome Tesco. I say why not, especially in light of the fact that the world's largest retailer couldn't beat them in their own backyard. There are ALDI stores everywhere now it seems and they have a simple concept that is hard to beat. LIDL is more concentrated in Europe, and is spreading north and east in Europe.
Name me one person who does not want to buy a product at a huge discount, especially branded products in the case of LIDL.
The other reason it's interesting in my view is that this is the second high-profile US company to concede defeat in Germany, the other being The Gap (or Gap as we know it over here). They pulled out due to intense pressure from H&M and Zara.
Maybe this suggests that the march of Globalisation is not inevitable and that someday we may yet see other high profile chains decide that some places are just not worth having a presence in, especially if the locals just aren't going to give you their business in favour of a more-local alternative.
So Wal-Mart marches on in it's profitable markets and so does ALDI and LIDL. Everyone can win and it doesn't always have to be about the big guy crushing the small local store.
2 comments:
H&M seems to be making in-roads here.
the image is real but it's just some guy who brought a whole load of his own crap to the side of a walmart store and put up the banner thinking it would be funny to snap the picture.
I don't imagine walmart would find it such a laugh. It's amazing what you can find on google images.
re H&M - they and Zara are both really expanding big time in the US & Canada. H&M is ahead of Zara and have more stores in North America but Zara is planning big for there too. It's what analysts call "cheap chic" and it is revolutionising how clothes are designed, distributed and retailed. A very interesting concept.
This, like IKEA, is driving the cost of well-designed stuff down.
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