Walmart, the American retailer who now own Asda, is building a new business team to London. They will be in charge of strategic planning with the aim of Walmart expanding across Europe.
Walmart acquired Massmart which is South Africa’s largest food and general goods retailer. They are now hoping to build on their takeover of Asda by merging and acquiring more British and European businesses.
Walmart last tried to enter the mainland Europena market when bought Werkauf, a German supermarket chain. However it could not find success with Werkauf so sold it in 2006.
The London based team will be looking for opportunities all over Europe and maybe beyond from their base. It is expected that there will be around 45 business analysts.
Last week Walmart’s first quarter results discussed how the UK and American markets are very difficult at the moment and that going into Europe is really the next logical step for the organisation.
Walmart is likely to continue operating the same business model of building huge out of town stores that sell everything.
Expect to see some mergers and acquisitions in the UK or European food retail markets over the next few years.