Supermarket and International Segment Essay
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Wal-Mart in Brazil is one of the third-largest retailer companies in the world’s fifth-largest country. Wal-Mart Brazil has more than 485 supermarkets, three and Sam’s hypermarkets in different Brazilian states, including Sao Paulo, one of the busiest state in Brazil. Wal-Mart Brazil ranks as the third-largest retailer in the world’s fifth-largest country. Since entering the market in 1995 with just two supercenters and three SAM’S CLUB warehouse stores, Wal-Mart Brazil has grown, mainly by acquisition, to number about 485 supermarkets and hypermarkets in more than 15 Brazilian states, including the populous economic center of Sao Paul.
Wal-Mart primary product lines are Food, Clothing, Household Appliances, Electronics and Grocery & Pets… Etc . While brand name merchandise accounts for a majority of sales, numerous store brands not found in the United States have been developed to serve customers in the different markets in which the International segment operates. In addition, steps have been taken to develop relationships with local suppliers in each country to ensure reliable sources of quality merchandise.
It operates retail stores in various formats around the world and is committed to saving people money so they can live better.
We earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at every day low prices while fostering a culture that rewards and embraces mutual respect, integrity and diversity. The merchandising strategy for the International segment is similar to that of our operations in the United States in terms of the breadth and scope of merchandise offered for sale. While brand name merchandise accounts for a majority of sales, numerous store brands not found in the United States have been developed to serve customers in the different markets in which the International segment operates.
In addition, steps have been taken to develop relationships with local suppliers in each country to ensure reliable sources of quality merchandise The International segment competes with a variety of local, national and international chains in the supermarket, discount, department, drug, variety and specialty stores, supercenter-type stores, hypermarts, wholesale clubs, internet-based retailers and catalog businesses in each of the countries in which we operate and, in Mexico, with local, national and international restaurant chains.
Our ability to offer our customers low prices on quality merchandise that offers exceptional value in the International segment determines, to a large extent, our competitive position. In our international units, our ability to operate the food departments effectively has a major impact on the segment’s competitive position in the markets where we operate. The main competitor for Wal-Mart in Brazil is Carrefour, a famous French supermarket chain, which entered the Brazilian market in 1974.
Today, the chain is responsible for the operation of 39 stores spread over the country, and is fully adapted to Brazilian culture and consumption habits, therefore not being perceived by customers as a foreign company. As a matter of fact, Carrefour is known as the lowest price retailer by people of all social classes. Customers impressed by low prices and extensive product lines, besides special offers, who had to travel several miles to reach the stores, were in for a surprise.
In case the products that customers were looking for had been sold out a few moments earlier, there was no provision as to when a new stock would arrive in the store. A badly planned product turnover? The fact is that they were facing an average stockout rate of 40%, while its stockout rate in the U. S. stores is no higher than 5%. Maybe this stockout rate has occurred due to various problems with suppliers, whom Wal-Mart executives expected to be capable of working in a just-in-time delivery environment.