9/19/2005

Wal-Mart still suffering growing pains in Japan
FT.com
….In the US, Wal-Mart has been able to raise its margins and still under-price the competition by continually pushing down the cost of goods sold. The retailer’s logistics have played a large part in helping the retailer reduce its supply chain complexity. In Japan, however, the multi-tiered distribution system, coupled with the vast product assortment that finicky Japanese consumers demand, has made it difficult for the retailer to simplify its supply chain and cut costs.
Though Wal-Mart has introduced many of its globally-sourced products into the Japanese market, such as portable CD players and bananas, it obviously has no buyer’s advantage when it comes to sashimi, tofu and shiitake mushrooms….more…

I’ve covered this several times before, but the best way to look at it is Wal-Mart Japan: throwing good money after bad . Wal-Mart Japan is going nowhere fast and their problems are multi-fold starting with their Arkansas-based monolingual management.
Likewise my comments also apply: Wal-mart, Aeon for the rotting carcass of Carrefour Japan and Wal-mart “snap photos of teens in Tokyo to divine what’s hot..