Why Walmart Failed In Germany



For all its ups and downs, Walmart is no doubt a genuine American institution. While you can find a Walmart superstore just about anywhere in the United States, you're probably not going to hear the name if you head over to Europe. That doesn't mean Walmart didn't try to expand to Europe. In fact, they tried to open stores in Germany, but in the end they had to say auf wiedersehen to their grand plans in the country by 2006. That’s because the difference in cultures between America and Germany are just too great. Germans are stoic, friendly people who strive for the best in their lives, so one would expect that Walmart could thrive as a company that aims to meet all their customers' needs in one store. The reality is that Walmart, with all of its American values, simply didn't fit into German culture. There were three primary reasons for the failure of Walmart in Germany. First was the fact that Walmart’s “employee motivation training” — like team-building exercises outside of the store — came across as too regimented and “silly.” Second was that German people were uncomfortable with Walmart employees smiling at them so much. Smiling awkwardly at the cashier in line may have been strange for people who typically reserve smiles for close friends and family. The third reason was due to conflicts with Walmart's ethic codes, which required employees to monitor each other in case of misconduct. In the end, it was clear that the corporation’s American customs didn’t alight with the culture in Germany.