Reuters reports that Wal-Mart’s decision to increase its stake in Japanese supermarket retailer Seiyu to 34 percent is reflective of a strategy that has it relying on global expansion for much of its future growth.
The problem, according to analysts, is that Wal-Mart management is concerned that it could saturate the US market by the end of the decade.
In addition to Japan, Wal-Mart has a significant presence in Mexico, Canada, Britain, and Germany, plus is moving into China, Korea, Brazil, and Argentina.
Beyond global expansion, Wal-Mart has the option of opening up new formats in the US -- such as the Neighborhood Markets that could be in hundreds of locations within a few years.
The problem, according to analysts, is that Wal-Mart management is concerned that it could saturate the US market by the end of the decade.
In addition to Japan, Wal-Mart has a significant presence in Mexico, Canada, Britain, and Germany, plus is moving into China, Korea, Brazil, and Argentina.
Beyond global expansion, Wal-Mart has the option of opening up new formats in the US -- such as the Neighborhood Markets that could be in hundreds of locations within a few years.
- KC's View:
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We wonder what the next format innovation will be for Wal-Mart after the Neighborhood Market. Stand-alone drug stores, for example? Or c-stores?
All of the above?
