LABEL Issue V
because
all
of
its
stores
were
hypermarkets.
preferences of local consumers and to
adjust its business model to the prevailing
domestic culture.
Wal-Mart’s view on its own failure was
SOUTH KOREA
that South Koreans simply preferred their
Walmart Korea, a fully owned subsidiary
own domestic shopping centers. While
of the U.S. retailer failed miserably too.
this statement is true as far as it goes,
Wal-Mart had acquired four stores and six
most individuals believe that Wal-Mart
undeveloped sites in South Korea. Wal-
failed
Mart's performance in South Korea was
consumer preferences.
always lacklustre in its eight years long
operations (1998-2006), with Wal-Mart
to understand South Korean’s
Distribution
Korea ranked at the bottom among five
As in the United States, most Wal-Mart
major
outlets in South Korea were placed outside
discount
store operators.
The
Walmart
instead of
withdrawal
in
the
from South
cities.
Korea
South
happened
in
Koreans
2006,
were
used
but
received
much
to
media
for buying
than
groceries.
Walmart’s
They
withdrawal
preferred
from
per se. The prime reasons were:
the
outskirts
coverage
failure in South Korea can’t be categorised
to
travelling
less
Germany. The reasons behind Walmart’s
not
stores
located in the centre of the city.
Some individuals felt that Wal-Mart
should have been located in the center of
Anecdotal evidence suggests that South
the cities where consumers felt more
Koreans believe that Wal-Mart failed in
comfortable with their shopping needs.
South Korea primarily due to Wal-Mart’s
Also, South Korean consumers were used
inability to understand the shopping
to shopping more frequently than most
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