With Wal-Mart Stores Inc. (NYSE:WMT) desperate for an international hit -- hoping it would take the spotlight off sagging U.S. sales and tarnished reputation -- the world's largest retailer has announced Monday that it has acquired a 35% ownership stake in the Trust-Mart chain that operates in China.The agreement is for Wal-Mart to purchase the controlling stake in Bounteous Company Ltd., which operates in China under the Trust-Mart banner used in over 34 cities in China. When all else fails in certain international markets, just buy into an already-successful one, right? I doubt Wal-Mart will want to do anything different with the influence it will bring with this non-controlling interest -- except to help share in the profits Trust-Mart brings.
Although this is a good move for Wal-Mart in its international marketplace, this little quip from Wal-Mart Vice Chairman Michael Duke (who's in charge of international market expansion) had me rolling: "...what we do best -- serving our customers with improved service, high quality, innovative products and lower prices."
High quality? Very doubtful at Wal-Mart these days, and a main reason I do not shop there. Innovative products? Sorry, but at least in the U.S., Target has Wal-Mart beat all over the place. Perhaps Chinese consumers will get "innovative products" there. Lower prices? Okay, I can agree with this one. Heh.
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