Walmart Retreats After Two Decades of Attempting to Infiltrate the UK Market
Walmart has always been a great success in the US market, but it continues to find international expansion a tougher nut to crack. This can be seen with its recent sale of Asda to Sainsbury’s as it retreats from the UK market.
Walmart has previously retreated from Germany and South Korea, and there are reports that they are looking to sell the majority stake of their Brazilian counterpart, as well. Still, all is not lost for Walmart’s goal of expanding business overseas: they are nearing completion of a deal to take a majority stake in Flipkart, an e-commerce group in India that rivals the likes of Amazon. Though this foray into the UK market was unsuccessful, Walmart can use the money from the sale of Asda to fund expansion into higher growth markets – an important lesson for business owners faced with lacklustre expansion results.
US-Iran crossfire affects European businesses
President Trump didn’t just withdraw from the Iran nuclear deal, he also imposed tough sanctions on Iran. This means that any business dealing with Iran could face penalties in the US. In effect, the US is using its global financial heft to force any companies who use the US banking system to comply
This will have a major impact on European companies such as France’s Total who have been planning to expand in Iran. The EU are scrambling to try and mitigate the fallout for European business, but its options are limited. This could pave the way for Chinese and Russian partners to take over as partners for Iran, as they are less exposed to the US financial system.
500 Jobs Lost in Ireland – All Thanks to Two Residents
Apple had its sights set on Athenry as the headquarters of its European operations for its latest international market expansion, but these plans have since been foiled by two disgruntled residents of the town. Apple has operated within Ireland since 1980 in Cork, and was looking to expand into Athenry with the construction of its new data centre, providing the town with 350 construction jobs and 150 permanent ones.
After local resident objections, delays and a trip to the Supreme Court, Apple announced it would build the data centre in Denmark instead. The takeaway? Make sure you understand local risks before you initiate costly plans!
The Galvin News Round-Up
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