This article is from the Australian Property Journal archive
The world’s largest retailer Wal-Mart has decided abandoned the South Korean market, selling its unprofitable centres for Won 825 billion ($US882 million).
The 16 super centre portfolio will be sold to South Korea’s largest retailer Shinsegae.
Shinsegae already operates 79 E-Mart hypermarkets in the country.
"As we continue to focus our efforts where we can have the greatest impact on our growth strategy, it became increasingly clear that in South Korea’s current environment it would be difficult for us to reach the scale we desired," Wal-Mart’s vice chairman Mike Duke said.
"We have decided to sell our business to the market leader as we believe this is the best option for our associates, customers and shareholders,” he added.
Duke said Wal-Mart will continue to have a global procurement sourcing office in Seoul.
Last month, Paris-based Carrefour SA, the world’s second largest retailer, sold its businesses in South Korea for WON 1.75 trillion ($US1.9 billion) to South Korean retailer E.Land.
E.Land bought 32 centres from Carrefour SA.
Carrefour SA also failed to win enough customers with warehouse-style stores.
The agreement is subject to the approval by the Korea Fair Trade Commission.
By Nelson Yap
