Has any foreign chain been able to really take off in Germany?
One of the two netto chains is Danish. It's only active in some parts of Germany though.
This Is Not America: Why Wal-Mart Left Germany (2006)
61–70 of 77 posts
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#62Earlier quoted context omitted.
If recent events in the UK are any guide, they get really unhappy over low prices. Your basic economic forces take it from there. Dairy farmers are like any other business in that many can stand to be more efficient.
"If recent events in the UK are any guide, they get really unhappy over low prices." Dairy farmers in the UK were complaining that some supermarkets were paying them less for a litre of milk than what it cost them to produce the milk. After protests from farmers, those supermarkets - which included Aldi, Lidl, Asda (owned by Walmart), and Morrisons - agreed to pay more for the milk price. The cost of milk is pretty c…
I, personally, am completely willing to see dairy farmers go out of business because they can't compete with imports.
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#63"Germany enjoys a healthy pro capita income" Locally walmart means absolute junk quality for poor people who wait in long lines. The description of Germany is a good fit for retail in general, but not walmart. This truth can't be stated in a commercial publication, walmart spends too much money on advertising, but I think it fairly obvious. Now Target could have possibly made it. Or maybe walmart could have made it i…
lidl is the epitome of junk quality for poor people who wait in long lines, and it's the quintessential german supermarket.
In Germany, Lidl and Aldi do attract higher income brackets as well. It's not considered a freak accident to see a Mercedes/BMW/Maserati/Audi/Tesla parked in front of them. Also small-family diner owners buying there as well, as Aldi/Lidl often beat wholesale prices (Metro Group).
Of course, if you visit one in the red light district it's going to be a different experience.
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#64Earlier quoted context omitted.
As a german, don't even know enough about Walmart to tell if they are in the same game or not. There are two mutually exclusive ways of doing cheap: you either take pride in being cheap our you try to hide it in everything but the price tag, aping pricier retailers in all other aspects (something Aldi or Lidl would never do, minimalistic presentation is the core of their brand identity). The pretend-premium version o…
"Over decades, the (maybe at most semi-true) idea that products bought at Aldi or Lidl will provide high value despite their low price" I hate to be defending Aldi's rep (or the allegedly faux idea), but as a regular shopper in Germany'S four major chains (Edeka, Rewe,Lidl, Aldi), I must insist: Aldi/Lidl ARE providing a good price-to-value ratio for customers :-) Of course, with the organic & premium chains popping…
The "semi-true" was aimed as much at the explanation (cheap presentation, which can't be the sole reason, otherwise it would be too easy to successfully imitate) as at the quality of goods (which is often high, but not always).
Edeka and Rewe are already out of the cheap range. Mainstream with cheap options very chose to the discounters and very far from the prices in the tiny organic/luxury segment, but still clearly distinguishable from the strictly cheap places.
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#65Has any foreign chain been able to really take off in Germany?
As some have mentioned, yes. But in general: Why must someone push his brand and store concept into another country, instead of buying/creating a local chain?
How often will grocery-buying customers from one country be shopping groceries while on vacation? And would a recognizable brand really leave the customer with an advantage? E.g.: If I were an American in Germany, yearning for Twinkies, which are nowhere to be found in regular stores in Germany, would I or Walmart be really better off, by also-not-finding-them in the German Walmart too?
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#66Earlier quoted context omitted.
"If recent events in the UK are any guide, they get really unhappy over low prices." Dairy farmers in the UK were complaining that some supermarkets were paying them less for a litre of milk than what it cost them to produce the milk. After protests from farmers, those supermarkets - which included Aldi, Lidl, Asda (owned by Walmart), and Morrisons - agreed to pay more for the milk price. The cost of milk is pretty c…
I, personally, am completely willing to see dairy farmers go out of business because they can't compete with imports.
That can be a short-sighted view, geopolitically. Look at the dependency many countries have on Russia for gas these days.
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#67Has any foreign chain been able to really take off in Germany?
One of the two netto chains is Danish. It's only active in some parts of Germany though.
Ah, the cute dog Netto, always a nice surprise when you come to the north from the south. And not half as weird as seeing wrong-colored Aldis ;)
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#68Earlier quoted context omitted.
True, but I think werber was referring to grocery stores (or the like).
But that's hardly something unique to Germany then. Off the top of my head, the Netherlands, France, Belgium, Spain, UK, Germany, Denmark, and Finland all have their own set of national grocery store chains, with only very little cross-border movement (Aldi and Lidl are the big exceptions).
Perhaps the other exception is Carrefour
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#69This reminds me of the Target retreat from the Canadian market. http://www.theglobeandmail.com/report-on-business/small-busi...
That was such a failure. They baited people in with the promise of a good selection of products at a low price when they had actually a pitiful selection and jacked up prices. Half of the shelves were actually empty. Clothes were of extremely low quality. They just did not do anything right.
While I fully agree with the empty shelf point (it WAS pretty pathetic), I don't accept the jacked-up price argument. Yeah, Target Canada did not have the prices one sees in Target US, but then Walmart Canada doesn't have the prices, either. Maybe in spots, but for the stuff I buy there's still a noticeable price reduction down south. Even factoring in the currency difference...
I think it's because Wal-Mart's been in Canada and people have grown used to the stores being there. Target was new, and it's way harder to overcome a screw up when new. Once the competition disappeared, things got more pricy in Wal-Mart so the Canadian consumer lost in various ways during this process.
I'm not sure they could have screwed up Target more if they tried. Perhaps this was all a tax write-off?
Re: This Is Not America: Why Wal-Mart Left Germany (2006)
#70Earlier quoted context omitted.
I, personally, am completely willing to see dairy farmers go out of business because they can't compete with imports.
That can be a short-sighted view, geopolitically. Look at the dependency many countries have on Russia for gas these days.
True! However, for things that are not economic necessities I view it as less of a problem.