Bloomberg reports that Walmart is “selling a majority stake in its Brazilian unit to private-equity firm Advent International. Walmart will retain a 20 percent stake in the business after the deal, which will result in a $4.5 billion non-cash net loss in the quarter. The long-rumored sale is the latest move by Walmart to reshape its global footprint, following deals in the U.K. and India.”
The story characterizes Walmart’s Brazilian operations as “a disjointed, money-losing unit that struggled to connect with consumers, endured a revolving door of management, and couldn’t match French retailers Carrefour SA and Casino Guichard-Perrachon SA, the top two players there. The nation’s punishing recession and political upheavals didn’t help, but Walmart’s Brazilian misadventure was deep-rooted.”
The story characterizes Walmart’s Brazilian operations as “a disjointed, money-losing unit that struggled to connect with consumers, endured a revolving door of management, and couldn’t match French retailers Carrefour SA and Casino Guichard-Perrachon SA, the top two players there. The nation’s punishing recession and political upheavals didn’t help, but Walmart’s Brazilian misadventure was deep-rooted.”
- KC's View:
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The best thing that can be said about Walmart at the moment - and I mean this sincerely, and as a compliment - is that they seem to reducing the number of sacred cows in the company.
BTW … one of my favorite business books is “Death to All Sacred Cows: How Successful Businesses Put the Old Rules Out to Pasture,” by Beau Fraser, David Bernstein, and Bill Schwab … available now on Amazon. It is a terrific guide to whatever business needs to do these days.
