Wal-Mart abandons German retail shelves

0 Comments | AFP, July, 2006

BERLIN (AFP) — The world's largest retailer Wal-Mart has said it was pulling out of Germany after eight years and would sell its 85 hypermarkets to the Metro chain.

Wal-Mart has struggled to establish itself in Germany which was its third-largest market after the United States and Japan, but the announcement still came as a surprise.

Analysts said the US titan had too few stores properly to develop the brand in Germany, while Wal-Mart itself blamed weak consumer demand for the decision.

"It has become clear that under the current economic conditions in Germany it is hard for us to achieve the size and results we are aiming for," said Michael Duke, vice-chairman of Wal-Mart Stores.

Hans-Joachim Koerber, the CEO of Metro AG, said the addition of the...