Walmart\u27s Exit from Germany

In 2006 Walmart stopped its operations in Germany. At the time, Germany was considered the third largest retailing market following the United States and Japan and seen as the gateway to eastern Europe. Due to this, it was crucial for Walmart to not only enter this market but to control it. This paper examines why Walmart failed in Germany and more specifically how brand identity, image, German competitors, and suppliers contributed to the failure of Walmart in Germany. This paper further analyses how Institutional Theory can be used to explain why Walmart had a difficult time securing its business ventures in Germany. The three pillars of Institutional Theory—Regulative, Normative, and Cognitive—are used to demonstrate how Walmart was unable to adapt its strategy to fit into the German culture. This in turn caused Walmart to discontinue its operations in Germany and most likely will prevent Walmart from entering continental Europe in the future