A New Economic Reconstruction Program

863 WordsJun 21, 20154 Pages
Wal-Mart has been cautious in moving into the international markets. In 1994, Brazil under new leadership was undertaking a new economic reconstruction program that aggressively shrunk monthly inflation rates from 40% to a low of 3%. The sound decreased in inflation rates helped improve the buying power of Brazilians and stimulated many outside companies to make new investments in Brazil. Major Competitors The economy of the retail sector in Brazil is mostly concentrated in the Southeast region. The area includes São Paulo State which is very dense, mostly affluent, and vastly developed. Is very dense and is also located in that region. The retail sector accounted, in 2012, for about 5.5% of GNP, with combined sales of US$ US$122.7 billion. The number of retail stores in Brazil amounts to 83,572 employing about 986,000 employees. The total retail sales floor in 2012 was approximately 21 million square meters, and the number of check-outs was about 210,245. In terms of sales volume, the main competitors are Carrefour, Casino & Pão-de-Açúcar, Casas Sendas, Bompreço and Paes Mendonça. Walmart was Brazil largest retail store until Casino merged with Grupo Pao de Acucar in 2012 giving it 41.3% of market share. Carrefour is Brazil second-largest retail company(14.5 sales). In the face of its Brazil’s expansion, Wal-Mart has a competitive advantage over its competitors because of its low price aggressiveness. Walmart implemented the same unique characteristics and qualities
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