In July 2006, Wal-Mart announced its withdrawal of operations from Germany because the firm was losing some $250 million per year on sales of $2.5 billion. Wal-Mart's 85 big-box stores were sold to German company METRO AG, a much bigger player with 550 stores in Germany. Commentators blamed competitive prices from national discounters as well as German consumer rejection of American-style signature features such as stores outside of town centers, employees required to smile and heartily greet customers, and baggers at checkouts.
Walmart (strategy to beating competitors)
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At some point Sam Walton made the decision to achieve higher sales volumes by keeping sales prices lower than his competitors by reducing his profit margin. By 1970, he had eleven Walton's stores Inspired by the successes of other discount department store chains, Walton opened the first store in his own discount chain in Rogers, Arkansas that year. Responsible for the purchase and maintenance of signage, Walton's assistant, Bob Bogle, came up with the name "Wal-Mart" for the new chain. By 1967, the company grew to 24 stores across the state of Arkansas, and had reached $12.6 million in sales, and by 1968, the company opened its first stores outside of Arkansas in Sikeston, Missouri and Claremore, Oklahoma.
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