Wal-Mart at risk outside its home market, even as it pushes sustainability

Wal-Mart, while following its overseas expansion plans, is taking on huge risks in the bargain, reports in the media said, citing difficulties the company had in the Korean, German and Japanese markets.

Quoting from The Wall Street Journal, reports said that Wal-Mart's new CEO Mike Duke is expected to carry on Wal-Mart's expansion in new foreign markets especially in developing economies, while reforging domestic stores to improve the company's position against other retail rivals such as Target Corp.

Reports said that Wal-Mart's two largest hurdles outside of its home market are the fast-growing markets of India and China that could be harder hit than the domestic US market in the current economic downturn. They said that both these markets rely heavily on the export market, which is almost lifeless, while consumer spending in these nations is likely to take a big hit, making them poor candidates for new stores.

An even more insurmountable hurdle to Wal-Mart's expansion plans could come in the form of protectionism that expands at a rapid pace in adverse economic times. Reports said the retailer could find itself shut out of some countries while being tied down in restrictions in others.

Speaking at Wal-Mart's "2009 Sustainability Milestone Meeting," the last major transitional event for Duke and Scott, incoming CEO Mike Duke addressed the company by talking about sustainability, and how it was "optional".

Wal-Mart's efforts for greater environmental responsibility started in 2005, when CEO Scott issued a call for Wal-Mart to be supplied 100 per cent by renewable energy, create zero waste and sell products that help sustain the environment.

Duke said he expects growth in sustainability efforts geographically and functionally throughout Wal-Mart's global operations and that the company's 2.2 million associates worldwide "recognize their personal, individual responsibility in the area of sustainability." He said that employees' upward mobility and success in the company would hinge on their success in demonstrating commitment to the company's goals.

"No matter what your job is - even from our hourly associates to our frontline supervisors to our senior leadership - sustainability is an opportunity to demonstrate leadership," reports quoted Duke as saying. "You will see that the leaders that get ahead in Wal-Mart will be the ones who demonstrate their commitment to sustainability. You won't be able, in the future, to be viewed in the same way if you put this on the back burner."