David Welch – Bloomberg, 04/12/2012
Wal-Mart Stores Inc. (WMT), the world’s largest retailer, plans to push its everyday low price strategy in China and Brazil to accelerate international sales growth that is lagging behind competitors.
Wal-Mart’s Brazilian operations have been moving to an everyday low price strategy — as opposed to using temporary sales and discounts — and will start a similar push in China in the first quarter of next year, Doug McMillon, president and chief executive officer of the retailer’s international operations, said today at an investor presentation in Toronto.
Chief Executive Officer Mike Duke has been struggling to help the retailer expand its overseas operations as profitably as it does in the U.S. The international unit’s operating margin narrowed last year as its sales rose 15 percent. Bentonville, Arkansas-based Wal-Mart lost market share in Brazil and China and faces new challenges in mature markets such as Canada, where Target Corp. (TGT) is expanding.