APPENDIX

The development of Walmart International

Here, we depict a timeline of the development of Walmart International – from a couple of stores in Mexico to a $100 billion plus business that straddles the globe (a notable achievement in a little over 20 years).

1991

• Walmart enters a joint venture with local operator CIFRA to open two Club Aurrera units in Mexico. Club Aurrera was a version of the Sam’s Club concept.

1992

• Walmart opens its first stores in Puerto Rico. The retailer states that it hopes the Puerto Rican stores will provide learning opportunities in cross-cultural merchandising and ‘oceanic shipping’.
• Activities in Mexico are expanded to include Bodega discount stores and Aurrera combination stores. Walmart states that 1993/94 will see the opening of Walmart Supercenters in Mexico.

1993

• Formal creation of the Walmart International division to ‘capitalise on dynamic growth opportunities’.
• Mexican JV is broadened to include Vips restaurants, Superama supermarkets and Suburbia clothing/department stores.

1994

• Walmart Canada established through the acquisition of the Woolco Canada chain of 122 stores.
• The retailer pledges to explore further international opportunities: ‘While we will proceed cautiously in light of obvious cultural differences, we are confident that the Walmart concept is “exportable” in part because of our emphasis on providing the customer with quality, value and service.’
• Opening of three Value Clubs in Hong Kong in partnership with Charoen Pokphand.
• Canadian operations are loss-making for the whole year, but make a small operating profit in Q4.

1995

• Walmart Brazil begins operations with two Supercenters and three Sam’s Clubs in the state of São Paulo in a JV in which Walmart has a 60 per cent interest. The remainder of the JV is owned by local retail group Lojas Americanas.
• Operations start in Argentina, with the opening of a Sam’s Club in Avellaneda.
• Walmart signs an agreement with Lippo Group to open Walmart stores in Indonesia on a royalty basis.
• The Supercenter concept debuts in Argentina, opening in Avellaneda.

1996

• Walmart Canada is said to have achieved operating profitability and a discount market share of 40 per cent in 1995 (after seeing a doubling in sales per sq. ft compared to the acquired Woolco network). Initial results in Argentina and Brazil are said to be ‘encouraging’.
• Walmart Mexico becomes the country’s largest retailer.
• Walmart elucidates on its international strategy, stating that it is following a ‘one store at a time strategy’: ‘From a core of several well-performing Sam’s Clubs and Supercenters, Walmart International can trigger a more aggressive expansion when the opportunity strikes.’
• Walmart begins its retail operations in China with the opening of a Supercenter and Sam’s Club in Shenzhen (both operated in partnership with local JVs).
• Opens first franchised store in Indonesia.
• Exits Hong Kong.

1997

• Bob Martin, President of the Walmart International division, provides some context on the potential scope of the global operation: ‘The Walmart name is better known outside the United States than any of us imagine. We are a global brand name. To customers everywhere it means low cost, best value, greatest selection of quality merchandise and highest standards of customer service. It takes time to make money in these markets, but the fact that International has grown to $5 billion in sales in less than five years gives us an idea of how great the potential is. The Walmart culture has proven that it is transportable to other cultures worldwide. The international market is virtually unlimited, and the farther the Walmart “global brand” reaches around the world, the greater the opportunity for long-term growth.’
• Walmart acquires a majority stake in CIFRA in Mexico.
• Walmart acquires the 40 per cent minority interest in its Brazilian JV from Lojas Americanas.
• Acquisition of the 21-store Wertkauf hypermarket business in Germany.

1998

• Walmart highlights the opportunity of learning from its international operations: ‘We are beginning to understand the true meaning and benefits of being a global company. The best in class from all over the world now set the benchmarks for our industry, whether domestic or international. “Speedy checkouts”, “gravity walls” and new merchandise items are examples of ideas from international markets that we imported and applied to our domestic business.’
• Exits Indonesia after one of its two stores is looted and torched during riots.
• Entry into South Korea via the acquisition of Makro Korea.

1999

• Acquisition of the 71-strong Interspar hypermarket business in Germany.
• In the UK, Asda is acquired by Walmart.

2000

• In Mexico, Cifra changes name to Walmart de México (WALMEX).
• Sells the three-strong Sam’s Club chain in Argentina.
• Dave Ferguson, former director of Walmart’s Canadian operations, is named in fiscal 2001 as the new President and CEO of Walmart Europe.

2001

• Walmart China opens its first Neighborhood Market in Shenzhen.

2002

• Walmart announces the proposed acquisition of Supermercados Amigo, the leading supermarket chain in Puerto Rico with 35 outlets.
• Walmart acquires a 6.1 per cent stake in Seiyu in Japan.

2003

• Asda in the UK opens two pilot George standalone fashion stores.
• Walmart opens its first four Sam’s Club warehouse outlets in Canada.

2004

• Walmart Brazil acquires Bompreço’s 118 stores in the Northern region from Dutch-based international grocery retailer Ahold.
• Asda in the UK opens its first Asda Living general merchandise superstore.

2005

• Walmart acquires a 33.3 per cent interest in CARHCO from Ahold. CARHCO operates in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica.
• Walmart Brazil acquires Sonae’s 140 stores in the southern region.
• Walmart acquires a majority interest in Seiyu in Japan, making Seiyu a Walmart subsidiary.
• Opens first MercaMás pilot small format discount store in Mexico.

2006

• February – Walmart increases its interest in CARHCO to 51 per cent and the name is changed to Walmart Centroamérica.
• March – In the UK, Asda opens its first pilot Asda Essentials store, a take on the hard-discount concept.
• May – Walmart announces the sale of its 16-store chain in South Korea to Shinsegai for US~$882 million.
• July – Walmart agrees to ‘sell’ its retail business in Germany to Metro.
• November – Walmart Canada opens its first Supercentres.
• In Mexico, the trial of the MercaMás pilot small-format discount store in Mexico is shelved, the five stores being converted to the Bodega Aurrera Express concept.

2007

• February – Walmart China purchases a 35 per cent interest in Trust-Mart.
• April – Walmart Argentina opens the Changomas concept in La Rioja Province.
• August – Bharti Enterprises and Walmart sign an agreement to establish Bharti Wal-Mart Private Limited, a joint venture for wholesale cash & carry and back-end supply chain management operations in India.
• October – Walmart Argentina acquires three Auchan stores in La Tablada, Quilmes and Avellaneda for conversion to the Supercenter format.
• December – Walmart completes tender offer for Seiyu in Japan, raising its ownership of Seiyu from 50.9 to 95.1 per cent.

2008

• February – In the UK, Asda closes the last of its Asda Essentials stores, converting the store to the regular Asda fascia.
• March – Asda closes its chain of George high-street clothing stores in the UK following a four-and-a-half-year pilot of the standalone clothing concept.
• April – Appointment of Dr Stephan Fanderl as President of Walmart Emerging Markets – East. Fanderl is appointed to lead the company’s efforts to explore retail business opportunities in Russia and neighbouring markets. Office opens in Moscow.
• April – Walmart proceeds with steps to acquire all of the remaining shares in Seiyu in Japan, which results in the delisting of Seiyu shares. In June 2008, Seiyu became a wholly owned subsidiary of Walmart.
• December – Walmart Puerto Rico opens a new concept, Super Ahorros. It is a bodega discount format, similar to the Bodega Express chain operated in Mexico.

2009

• January – Walmart acquires a majority in D&S, a leading food retailer in Chile.
• February – Walmart Canada closes its Sam’s Club chain.
• March – Walmart China begins trading through three Smart Choice small-format stores.
• May – In India, Walmart and JV partner Bharti open their first Best Price Modern Wholesale cash & carry in Amritsar.
• December – Walmex confirms an agreement to acquire Walmart Centroamérica, taking full control of the regional division of Walmart International.

2010

• January – Walmart Puerto Rico is absorbed into the Walmart US business unit.
• May – Asda announces plans to acquire the 193-strong Netto discount chain in the UK from Dansk Supermarked. The deal is referred to regulators to decide how many stores should be divested to maintain local competition.
• September – Walmart announces a $4 billion offer for South Africa’s Massmart. At the time of the announcement, Massmart traded through nearly 300 stores in 13 African countries. The offer is referred to various local regulators.

2011

• January – Asda announces that it has met the UK Office of Fair Trading’s requirement to agree purchasers for a number of Netto stores across the UK. Subject to final regulatory approval, Asda will operate 147 Netto stores in the UK, adding 1.2 million sq. ft of space to its portfolio. The stores will trade under the Asda Supermarket banner and will average 8,000 sq. ft in size.
• May – The South African Competition Tribunal announces that the Walmart and Massmart merger can proceed to finality and has accepted the conditions proposed by Walmart and Massmart, which include the set-up of a 100 million South African rand supplier development fund, no merger-related retrenchments for a period of two years and continued recognition of SACCAWU for three years after the merger.
• May – Asda announces that it is exploring opportunities to franchise its George at Asda range in markets overseas. It states that it expects to announce its first overseas franchising partner with the intention of establishing a small number of pilot stores in the Middle East in the first half of 2012.
• June – Target announces that Target Canada has reached an agreement to transfer to Walmart Canada the rights for leasehold interests in up to 39 sites, currently operated by Zellers (the Canadian discount chain acquired by Walmart’s US rival Target).