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Why Walmart Is Failing In Japan

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Walmart made headlines in July 2018 when Nikkei Asian Review reported that the company was looking to sell its Japanese subsidiary, Seiyu. Walmart told CNBC it will continue doing business in Japan, but company filings show that it has closed more than 100 Seiyu stores in recent years. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Walmart #Retail Why Walmart Is Failing In Japan | CNBC
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Text Comments (1331)
darthnipple (22 hours ago)
Don't lose hope. I hope that walmart fails and gets what they deserve. I will no longer use rakuten. I wish that Amazon will brutality wipe out all of walmart just like walmart has done to the shops before it. The reason why walmart fails everywhere else is because the US labor laws are virtually non-existent as far as what walmart likes to hire. So in turn all walmart cares about is itself and doesn't give a damn about who they hire, or anyone else. I can't decide if I want a swift death to walcrap or a slow painful one, but they are officially worse than Comcast.
mitch B (2 days ago)
All wrong usual dum dumb throwing wrong info at unknowing . The company they took over stealthy Seiyu is doing fine. They make money and except for the walmart emblem yJapanese wouldnt know. They are cost efective and the one near me closed bcause they are making it bigger. Tesco was bad and Costco is a monster thats her only correct comments. Costco pays 16 dollars an hour . Dont listen to another half backed Japan you tuber. Aeon is a monster thete is no real no 2.
darthnipple (22 hours ago)
Costco a monster? You must be a weird walmart employee, in management, or a weird fanboy. I do understand your right to an opinion but my experience is that Costco has cheaper prices than walmart even in bulk; but then again so does Aldi, Food city, Save-alot. Hell even Dollar General has cheaper and better quality goods for god sake, along with the 100 yen store, also Amazon, etc. Costco pays a hire wage dare I say almost livable. Costco also treats their employees with at least an ounce of dignity. They offer their employees benefits, and tuitiion. walmart will hire and fire you in the same day just for breathing wrong as I am sure the Germans found out when they closed in Germany. Speaking of Germany walmart is literally worse than being in a labor camp. When I clocked in I would only hope that the morons that they promote into supervisors would've had a weapon and ended my suffering. Hopefully they won't soon exist anywhere but in an awfully written history book.
remigio de dios jr (3 days ago)
I rather shop at Don quijote store 😉 Tokyo Japan may 2019
Hazza Cool man (3 days ago)
*_Walmart doesn’t exist in where I live_*
Zack Akai (4 days ago)
I wish Wal-Mart would die a slow, painful death here in the US as well. But I also wish American cities were laid out like Japanese cities, and that just isn't happening any time soon because this country is so goddamn reliant on cars to go almost anywhere. It's not like most of Japan, where you can just walk to your local store or catch a train if your destination is farther away.
Nic Kirito (4 days ago)
Walmart sucks anyway. All profits leave Japan, and dont go back into the community like small business
arranmc182 (5 days ago)
walmart also pulled out the UK they sold off the ASDA brand and pulled out maybe they are looking to make sure they stay strong in the USA
H Sam (3 days ago)
Really? Threre's no Walmart left in the UK at all?
OllamhDrab (5 days ago)
Good on you, Japan. You don't need that. (They really screwed up our country over here, and that's not marketing or 'culture,' even, it's that they used all but force to be the only option in any given town.
naoyuki sasanami (6 days ago)
The key is why Costco partly could success in Japan. that brought kinda new way of consumer life rather than localizing. Walmart nothing new
imacg4 (6 days ago)
It’s geography. In a country that’s more packed than NYC, you can’t sell stuff like in the more dispersed parts of US. When they figure out how to win NYC - or more precisely Manhattan, Walmart had the potential to succeed in Japan.
Damin Mance (9 days ago)
I know why it failed but most people will not believe why
M Bee (9 days ago)
This was an almost interesting story, but the elocution is so painful to listen to.
Tow Wong (12 days ago)
I never knew there were Wal-Marts outside of the U.S.
Chris Banana (13 days ago)
Japanese like fresh local foods and coupons? Well HEB can safe the day!
Laura chan (14 days ago)
Why go to Wallmart when you have seven eleven in just three minutes walk?
Alex K. (14 days ago)
Walmart also failed in Germany.
CK'sGaming Channel (16 days ago)
I dont shop at wallmart.
Shimazaki Altair (20 days ago)
Japan = 7/11 everywhere 😂
Mr Peco (20 days ago)
China is their neighbor.......
All the World's Evil (21 days ago)
Nobody Seven eleven and lawson Ima end this corporation whole career
HyeHeeLip (21 days ago)
it just doesn’t make sense. its odd to think about walmart in....japan? Weird.
hitbosify (22 days ago)
walmart sell katana sword they fail localize in japan
XCVI Caye (22 days ago)
I’m from Japan but WTF WE HAVE WALMART?!
Power Level Bomber (22 days ago)
I work for Walmart, horrible company. Hopefully Americans wise up and realize they are a monopoly and start purchasing from small mom and pops. Oh wait to late they already closed because of Walmart.
JaeyunJi (23 days ago)
Walmart already failed in Korea
一山田 (23 days ago)
汚らしい印象w
Zom Bee Nature (23 days ago)
Wal-Mart is low class trash
Frankie Roberts (27 days ago)
What an understatement .guess who makes all the goods in walmart ? Walmarts doing great . plus now selling gas . japans cleaning up in america taking cover
flips graf (27 days ago)
Wallmart fails in every market thats not North-American. They fail to realize that asian and european consumers don't have american preferences.
Elizabeth Phelan (27 days ago)
Not only a walmart is a struggling American brand in japan. almost every american brand is struggling japan, except APPLE
Ninja Tony (6 days ago)
Elizabeth Phelan you couldn't be more wrong. McDonald's, Coke, KFC, and tons of other American food brands do very well in Japan.
FinalFantasyFan92 (27 days ago)
You forgot to mention Walmart is also trying to pull out of the UK too by merging it’s Asda stores with rival Sainsbury’s.
Walkrunner (28 days ago)
This is not the first time Walmart struggled overseas. Last decade Walmart struggled in Germany also. In 2006 Walmart pulled out of that market, and many of the same problems that occurred in that Venture is occurring in this venture. The biggest issue was lack of understanding of the German consumers.
jose v (29 days ago)
Why do Americans buy Japanese stuff if Japan doesn't do the same.
Huikwan Cheung (28 days ago)
No tariff leverage would change that
Huikwan Cheung (28 days ago)
Because you and your stuff are naturally inferior.
Dottie Smith (29 days ago)
They are closing here in the U.S as well. It is call Fema Camps...
Vision33r (1 month ago)
Because Japanese likes high quality products with personality. Not all this junk low quality stuff from China. Japan has many chain store that sells cheap goods but high quality so there's no competition. Walmart stuff sucks.
yamamancha (1 month ago)
This video has an Aeon ad lol. Aeon is everywhere and Seiyu quality is low.
Shirley Ito (1 month ago)
Japanese only eat fresh foods, quality ! Not quantity! US company should study about Japanese market, different culture. Even homeless Japanese eat fresh food .😀
Sparkey Jones (1 month ago)
"Abandon all hope when it comes to Walmart business in Japan"? Screw Walmart... I could have told them their business model wouldn't work there. Perhaps they should stick to ruining small towns in rural America.
Rau Kenneth (1 month ago)
Walmart succeeds in USA because shopping is a sporting competition here for entertainment. Americans enjoy buying as much junk as they can. Other countries people buy what they need.
Viking Queen (1 month ago)
Walmarts are concentration camps in disguise. Everyone world wide should be boycotting them.
Kering Quesada (1 month ago)
In CR Wallmart is very expensive and their products are very low quality....
the alaskan (1 month ago)
WalMart's way of doing business probably offended the Japanese employees and word got around and people responded by not shopping at the stores.
lothean (1 month ago)
The real reason they cant compete, the Japanese are smart enough not to let them be slaved out
Direcode Vincent (1 month ago)
Funny how everyone in the comment section is an expert on Japanese people and their preferences .
Emi XD (1 month ago)
Fellow Japanese here I love Costco
Kay B83 (1 month ago)
No... Down with WalMart they're evil!!!
BadUploadScheduleツ (1 month ago)
Walmart is only successful in places like US where people do shopping for whole week and stock up Pretty much everywhere else in the world people do shopping on a daily basis getting smaller quantitys of food than the US
butterstix 24 (1 month ago)
Japanese dept. stores like Daiso, Uniqlo, and MUJI (Seiyu) are waaay better than Walmart when it comes to price and quality. Also 100 yen shops in Japan, the equivalent of dollar stores, really price all their items at a dollar. There’s really no reason to have Walmart in Japan.
The5GIO5 (1 month ago)
Failed in Germany 15y ago
momo kyun (1 month ago)
costco is doing well. never shopped there though as it opens a store in a city with more than 700k population. and what they sell is not sold at ordinaryJapan supermarkets unlike seiyu.
K*Ships in K*Chups (1 month ago)
Wal-Mart should shut down in Japan
hohoho class war (1 month ago)
I live in seattle, i've been to walmart twice in my whole life. everyone shops at target, trader joes, and fred meyers.
Con Tra (1 month ago)
The int'l Walmarts lacked weirdos randomly waltzing in at midnight. That's why they fail.
Larry Bundy Jr (1 month ago)
WalMart have just left the UK a few months ago too.
Ana Marie Vivero (1 month ago)
Give back the old SEIYU!!! Because the Walmart I can find the salmon I use to buy in SEIYU BEFORE!!!! That salmon is very expensive but I love it!! So as Japanese people!!! You think people here don’t mind the quality!? People here don’t care if the goods are expensive or cheap!!! They do concern about the quality not the price!!! I do too!!! I don’t care using the triple A rank wagyu for my beef curry!!!! As long I like the taste!!! The Japanese are the same as me!!! Please leave the SEIYU alone!!! I do really miss that salmon!!!
kin kin (1 month ago)
Muji started as a private brand of Seiyu. Seiyu is still a good supernarket but its osouzai (already cooked food items) is less atractive. Anyway Seiyu is better than Aeon.
Bronze tier grammar (1 month ago)
Because Pauls brothers shouting WAAAALLLMAAAAAAARRRTTT
Danny Fenty (1 month ago)
Why would Japan embrace Walmart? Yuck
Dr ROLFCOPTER! (1 month ago)
Wallmart also failed in Europe. Sold all its stores and turned the UK branch to a subsidiary ASDA.
MLG Still Exist (1 month ago)
Japan hate Paul brother thats why.
stm enterprises (1 month ago)
next should be why is apple struggling in india
Danah (1 month ago)
I’ve lived in japan for nearly 10 years and this is the first time I heard Walmart existed here
hoherspatz (1 month ago)
Walmart also failed in germany more than 10 years ago
joefrog1996 (1 month ago)
Japanese has been significantly westernized. However I suppose not enough for Walmart to be successful.
Robin 289 (1 month ago)
They also failed in other parts of Asia and Europe. They just don't get it.
marisol0813 (1 month ago)
American consumer should think more like Japanese and buy more local foods. We let big companies take over and put small businesses out of business. I like to shop different store for different sales and products. Wal-Mart is the last store I want to go to when buying what I need. The parking lot and store is too big, it feels like a mission every time I have to go, especially for just one item. It's really not that much cheaper than other retailers if you compare the quality of the produce and clothes.
basil al sadi (1 month ago)
The idea of opening a Walmart in Japan legitimately sounds stupid when said out loud. Never should have happened.
Tsetsi (1 month ago)
Asians shop at small shops
theuniplex (1 month ago)
have not shopped in wal-mart for years....
Jaspeb (1 month ago)
Walmart failed in Germany too. (I think they failed pretty much everywhere but the states)
Pin Wei (1 month ago)
Do u mean if Walmart hires analyst who is explaining in this video would make the move to succeed at international scale?
Mountainguy (2 months ago)
Good riddance to WAL-MART !
Noel Bedy (2 months ago)
I’ve never shopped at Walmart and never will. POS company.
Ninja Tony (6 days ago)
Noel Bedy that's too bad it's a good company to work for. They pay much better than other retailers, offer great benefits, quarterly bonuses and much more.
Pill Box (2 months ago)
Japanese aren’t fat and stupid like most Wal -Mart customers
ccggenius12 (2 months ago)
Brazil, one of the four fastest growing economies in the world right now is a low growth market? Yeah, OK Walmart.
ccseic (2 months ago)
Because only dumb americans are shopping at Walmart...really!
Colby McDaniel (2 months ago)
this music is giving me anxiety
Jeremy Aber (2 months ago)
Because We ASIANS loves going to Wet/Dry markets to purchase our goods.
Tamires Caron (2 months ago)
Walmart is failing in Brazil because in order to buy there you need a Walmart credit card that the bill has to be paid in store. In Brazil we already have macro that operates in a similar way, but sells in bulk and give a better price discount, also we have other cash only supermarkets that are cheaper than Walmart too, like Fort, Atacadão or even Açai, which has the same price tag as Walmart but accepts any credit or debit card.
Brian (2 months ago)
Anyone one that doesn't think Wal-MArt understands it's customers hasn't done the research, also any company acquiring a large chain will clearly close the poor performing stores. It's hard to tell if this story has any facts in it at all.
Lars Delver (2 months ago)
WAIT WHAT?! I LIVE IN JAPAN FOR LIKE 15 YRS ALREADY I JUST FOUND OUT
A wet Loli (2 months ago)
This comment was sponsored by family mart
shuichi tomono (2 months ago)
Once again thanks CNBC. You have a interesting and unique perspective when choosing presentation material. Your style is distinct and professional. Much appreciated!!!
Y S (2 months ago)
*CNBC ALWAYS TALKS ABOUT AMERICAN FAILURS* 😂😂😂😂😂😂😂😂😂😂😂😂😂
herra tulitikku (2 months ago)
Walmart tried it in Germany and failed completely. In the result they left Germany and were never seen again.
Hunter Phung (2 months ago)
Japanese people are picky they would buy cheap stuff from Walmart.
David VdB (2 months ago)
They failed in Europe too, had to pull out completely
rhodesi926 (3 months ago)
If theres one group of people that know what a concentration camp looks like its the japanese...just saying..ill leave now
vsboy 25 (3 months ago)
Walmart is classy in America
98cebu (3 months ago)
Walfart sucks.
Sweet Silly Stuff (3 months ago)
Walmart will be successful in PH I think as long as they sell american goods and not same as the usual goods we buy in the supermarket
I don’t know (3 months ago)
I thought Walmart was just in America
JoJo Sapiens (3 months ago)
American corporate doesn't understand the Asian market.
Sun Shine (3 months ago)
Walmart come to Algeria ! You guys will be a geat success !
nathan painter (3 months ago)
goodbye
erstla (3 months ago)
Japan support Japan!!! Buy made in Japan! Buy from local business!
Aimeran (3 months ago)
America: Cheap Japan: Quality America: Fat Japanese: Healthy
xcamillef94 (3 months ago)
Isn't ''sunny'' owned by Walmart? Because they seem to do well in Japan
Apenas uma Pessoa (3 months ago)
Let's be honest:Walmart is a failure outside of the USA
James yue (3 months ago)
why would japanese want to buy American's inferior product, if they have much superior quality goods right in their doorstep.