business news in context, analysis with attitude

• Published reports in the European press say that Wal-Mart plans to close its German stores that have been deemed unprofitable, though the company isn’t saying exactly how many of its 85 stores in that country would fit into that category.

"If we reach the conclusion with some that we cannot operate them sustainably in profit, we'll close them,” David Wild, head of Wal-Mart Germany, told a local newspaper there. Wild said that the German Wal-Mart stores range from some that are making a lot of money to some that are losing a lot of money.

Wal-Mart has been unable to make much headway in Germany both because of shopper resistance to its definition of the value proposition and because of strong competition from local retailers.
KC's View: