September 20, 2005

Wal-Mart to take over CARHCO

For now, Wal-Mart has purchased a 1/3 share of CARHCO from Ahold:

"We believe our investment will add strength to the partnership by helping to keep prices low for consumers and will offer new opportunities to suppliers in the region for additional business development," said John Menzer, chief executive of Wal-Mart International.

It has 363 supermarkets and other stores in Guatemala, El Salvador , Honduras , Nicaragua and Costa Rica , with 23,000 employees.

It had $2 billion in 2004 sales, Wal-Mart said.

Eventually WM will become the majority holder. How much do you think Wal-Mart paid? Rick Munarriz thinks this is a great idea:
It's a good move. Wal-Mart has the size and brawn to go it alone overseas. However, a move like this -- much like its team-up with Cifra to form Wal-Mart Mexico in 1991 -- allows the world's leading retailer to toil in new territories with the locals' blessing. Contrary to conventional wisdom, Wal-Mart isn't everywhere these days. The prolific discounter claims to own just 3% of the global retail market, and it wouldn't mind nibbling away at the other 97%.

Posted by Kevin at 3:51 PM