Thursday, February 15, 2007

Wal-Mart looking to enter Russian market

Wal-Mart is reportedly looking to find a suitable partner to start operations in Russia. According to a news report in Reuters, officials from Wal-Mart visited Moscow last week to determine if the market was ready for the US retail giant. Rising incomes and an economic boom for the past eight years in Russia, is the likely cause of the renewed interest shown by Wal-Mart. According to Wal-Mart vice-president Mike Bratcher, besides rising incomes of consumers, local retailers have also been successfully experimenting with new retail formats, paving the way for a concept such as Wal-Mart's.
Media speculation has centred on a possible partnership deal between the country's leading food retailer X5, which has ruled out a full-blown foreign takeover but has spoken to Wal-Mart, TescoCarrefour. Also in the frame as possible targets are food retailer Lenta, which is based in St Petersburg, and Turkish-controlled Ramstore.

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