Jobs and stores to go as Walmart slumps again

15th March 2005, Comments 0 comments

15 March 2005 , HAMBURG - US retail giant Wal-Mart has run into further problems with its business in Germany's sluggish consumer market and will be closing down one of its stores, the Financial Times Deutschland newspaper reported on Tuesday.

15 March 2005

HAMBURG - US retail giant Wal-Mart has run into further problems with its business in Germany's sluggish consumer market and will be closing down one of its stores, the Financial Times Deutschland newspaper reported on Tuesday.

The paper said Wal-Mart has confirmed that it is to close down its store in Neunkirchen in the southwestern state of Saarland, affecting some 100 employees.

Wal-Mart currently has around 90 stores in Germany. The FTD report runs contrary to the comments made four weeks ago by Wal-Mart's boss for Germany, Kay Hafner, that the company is on an expansion course and was looking for new sites.

Analysts say the company has suffered big losses in Germany during the past few years, forcing the closure of some outlets. In the next few weeks Wal-Mart will be handing over two stores, in Solingen and Erkelenz, to a discount retail competitor, Kaufland.

The FTD report said it appeared that Kaufland could also take over the Wal-Mart store in Neunkirchen.

Wal-Mart entered the German market after buying out the Wertkauf chain in 1997.

The company's precise figures in Germany are not specified in its business reports since results are reported international accounts which also include operations in several other countries such as Britain, Canada, Brazil and Mexico.

DPA

Subject: German news

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