Wal-Mart’s Everyday Low Prices Fail to Stir Brazilians: Retail
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A relentless focus on everyday low prices helped Wal-Mart Stores Inc. become the world’s largest retailer. The strategy hasn’t been working in Brazil.
Wal-Mart is still losing money there two decades after entering South America’s biggest market, acquiring two local chains in the mid-2000s and opening more than 500 stores. The company is battling competition from Carrefour SA and Casino Guichard-Perrachon SA, French chains that have embraced Brazilians’ penchant for shopping around for the best deals. Adding to its challenges, Wal-Mart lacks the scale to squeeze local suppliers on price as it has done so effectively at home.