The founder of Wal-Mart, Sam Walton, opened the first large-scale variety store Wal-Mart Discount City in 1962.
In 1969, Sam Walton incorporated his firm as Wal-Mart Inc. and established a general headquarters and a distribution facility in Bentonville, Arkansas.
Wal-Mart Brasil was established in 1994, with Lojas Americanas participating with 40 percent of the shares.
The new company started to operate in April 1995. Up to the end of March 1996, with a total investment estimated in US$ 118 million, Wal-Mart built five stores in Sao Paolo, Brazil’s largest city and overtakes the largest market in Latin America.
At that time, Brazil was still emerging from decades of hyperinflation and economic mismanagement.
Problems quickly arose. In the beginning, the company’s entry had all the earmarks of the typical Wal-Mart D-Day policy; hit the market hard and fast to overwhelm the competition.
It opened 25 stores before its first acquisition in 2004 and its expense illustrates the difficulties of converting rising consumer wealth into a good business.
Wal-Mart’s Brazilian competitors didn’t waste any time in counteracting the Blitz, blanketing the country with advertising promoting new store openings and most effectively, offering lower prizes.
Wal-Mart Brasil was also responsible for rapid modernization of Brazilian retailing, accelerating the adoption of automation by large and medium sized companies.
Currently Wal-Mart is Brazil’s third-biggest retailer by sales and Carrefour’s business is number two. It already owns 484 stores serving an expanding middle class became a fixture in global investment trends.
On Monday August 15, 2011 Financial Times reporting that Wal-Mart has hired UBS to examine a potential bid for the Brazilian business of Carrefour. Wal-Mart has been eying Carrefour’s Brazilian assets for the last two years, but has failed to acquire it owing to price agreement.
Wal-Mart in Brazil
