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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 (1226)
rhodesi926 (1 day 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 days ago)
Walmart is classy in America
98cebu (4 days ago)
Walfart sucks.
SweetSavvyNaomi (4 days 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 (4 days ago)
I thought Walmart was just in America
JoJo Sapiens (5 days ago)
American corporate doesn't understand the Asian market.
Sun Shine (6 days ago)
Walmart come to Algeria ! You guys will be a geat success !
nathan painter (6 days ago)
goodbye
erstla (6 days ago)
Japan support Japan!!! Buy made in Japan! Buy from local business!
Aimeran (7 days ago)
America: Cheap Japan: Quality America: Fat Japanese: Healthy
xcamillef94 (7 days ago)
Isn't ''sunny'' owned by Walmart? Because they seem to do well in Japan
Apenas um Youtuber (10 days ago)
Let's be honest:Walmart is a failure outside of the USA
James yue (12 days ago)
why would japanese want to buy American's inferior product, if they have much superior quality goods right in their doorstep.
RescGT777 (13 days ago)
Japan is not for newbies
The Brown RAT (14 days ago)
Cause it's failing everywhere
Ted Haggard (15 days ago)
Walmart failed in Indonesia, Malaysia, Singapore, and Papua New Guinea many years go
Inbal Feuchtwanger (15 days ago)
Costcos absolutely wrecks it in Asia. It isnt just Japan. The busiest Costco's are consistently in South Korea and Taiwan with daily sales of over $1 million USD.
Y S (20 days ago)
They want you to buy Japanese not American
Phillip kim (21 days ago)
Walmart failed in neighboring Korea as well. One of the biggest reason for the failure is that the Koreans go to a mart for fresh produce which Walmart don't provide. I imagine its the same in Japan.
A L (23 days ago)
Quality. Quality. Quality. and Price. Price. Price. You can't take American needs and think that it will do well in Japan. This is what is wrong with America. They think they are so great and wonderful that everyone wants to be like them. It's actually the opposite. After living in Asia, I wanted the way Asia does it's food here in USA. USA is trying to copy they with organic fresh food with farmer's market styles.
Karlla Kathariny Rios (24 days ago)
They had the same problem in Brazil. They don't make a study of the consumers habits and just try to introduce the same tipe of sales they do in the US. It doesn't work.
Grim Reaper (30 days ago)
I'm Arab, Japanese keep your culture. Don't let terrorist America export the virus they pass off as "culture." They have no culture, no civility, no morality, no ethics, etc. Their religion is the dollar. They have yet to apologize for the terrorist attacks in Hiroshima and Nagasaki.
Bino Dino maxilimilanMus royal guard (30 days ago)
They just don’t understand international culture
alimar pr (1 month ago)
simple in japan you don't have welfare queens and ebt lowlife that live by walbroke
KinoZampie (1 month ago)
I don't get it *"Retailers often fail because they don't adapt to the local tastes."* _Walmart makes a convenience store, similar to many others in the region._ _Costco does their own thing and sticks to their buy in bulk strategy._ *Costco is succeeding in Japan.* wat?
Steve Siverling (1 month ago)
I am not sure if the Japanese may want to buy from someone who is one of them.  Like in the USA people want to buy stuff from USA.
Luna Pup (1 month ago)
Lol to be a millionaire in Japan you only need $10000
Beatriz Flores (1 month ago)
Why am I watching this ? Who the f cares
gabimoneratt (1 month ago)
Walmart isn't cheap in Brazil in most of what it sells. As a result, Brazilian shoppers prefer to shop at Brazilian grocery stores(stores that can and do give them better deals). Walmart, in Brazil, failed at the only thing that makes it interesting to consumers, price. Simple as that... I can see why they'd be failing in Japan too.
mitch B (1 month ago)
Actually they are still making a profit and doing ok.And they kept the name Seiyu as not to alienate customers,Sitty journalism. Costco,starbucks are doing great,shabby piece. The history of seiyu and sister company siebu should be explained.
Kosmo Aduodonkor (1 month ago)
At the end of the line the issue is culture and the differences between the consumerism culture in the US and many other Western cultures and Japanese culture. Irrespective of the personal opinions anyone may have of the business there is no need to trash those who shop at Walmart, as for many it is the best and most affordable option. What works in America may not work elsewhere and in the same manner most of Walmart's customers don't have as much access to cheap fresh produce.
Joshua Degreiff (1 month ago)
Cause is American, and they have Costco already so why bother? Look at Xbox brand fail, Amazon isn’t going well in Japan, and China fail miserably. Japan is for Japanese, they’re not a multi-cultural country why western can’t understand some countries don’t want be multi cultural.
Eddie L (1 month ago)
Not just Japan, Walmart is falling in China too. That is really a surprise.
ivan gonzalez (1 month ago)
I hope Walmart fails everywhere
JAY PARRA (1 month ago)
BYE WALMART BYE!
childsupport 101 (1 month ago)
United States need to cut down on Japanese business in the u.s
Peter XYZ (1 month ago)
Store ran by culturally ignorant corporate board.
Ivan Hernandez (1 month ago)
why there struggling because Japanese people are smart
superhungdwarf (1 month ago)
Japan has always been open to foreign trade...oh wait...no they never have....Enjoy the bright lights from Fukushima...I guess you guys missed the radiation.....lol
Κωστής (1 month ago)
Μαρινοπουλος;
Corsair Soul (1 month ago)
Hey they failed in Europe too!
Kevin Davis (1 month ago)
Short answer, they're smart enough to have no interest in buying cart fulls of Chinese trash.
1irustim (1 month ago)
Walmart is a cancer!
Robert Matsumura (1 month ago)
No, it’s because customer service is important in Japan. Walmart fails in that department. Walmart blows.
Ice Lynn (1 month ago)
I would be happy if my country has Walmart cuz I can buy Roblox redeem card every day XD
tbyjb (1 month ago)
Japan is about precision and quality. Walmart is junk and low class. Simple as that.
Ravanan Azhagiyasinger (1 month ago)
Now Walmart can’t say Japan is a poor country
keiichi maebara (1 month ago)
Could it also be that Walmart doesn't care about their employees or their customers and that Japan is all about respect so they really can't stand Walmart I'm just saying
Gemini6Beauty (1 month ago)
If I can’t get it from target I don’t need it, not a fan of Walmart and I’m in America 🤷🏽‍♀️
EEE GGG (1 month ago)
Japan is too cool for Walmart😎
Mary Wagner (1 month ago)
If they keep looking up your butt with a flashlight as you leave , they will fail here
Neriza Gonzales (1 month ago)
Mostly Walmart products are Made in China! !!
Darth Awar (1 month ago)
Walmart want to come Down Under and wants at least 50 stores by 2030 and 250 by 2050!
mike askme (8 days ago)
@Darth Awar dont let it happen, trust me you guys will regret it.
AOCLIVE (1 month ago)
American business failing in Japan make me a happy person
Captain America (1 month ago)
What is Walmart? Never heard of her.
xVOLTx (1 month ago)
There seems to be this myth that shopping at Walmart saves you money... That simply isn't true.
mike askme (8 days ago)
@XVoltx, so true, so very true. On some products you may save in the short term, but long term you will not. Examples clothing, and furniture, you buy it and almost 6 months to a year later you will have to buy the same item again.
Byron Chavarria (1 month ago)
Walmart And Ford Exiting Japan
Aggressive Bread (1 month ago)
Support PETA. Fried chicken is murder!!!😱😱👎
ShinTzaddi (1 month ago)
Wallmart failed in Germany too. Two main reasons were that Wallmart fought and lost to the Government regarding labor issues and wages and that the American version of customer service was not highly regarded by Germans.
Jondavid Bristow (1 month ago)
I wish walmart would struggle and fall apart in the US.
ezrhino100 (1 month ago)
if you shop in japan you will find out very quickly why walmart sucks. the japanese shopping centers are vastly better than walmart. better products and better experience. walmart products are ghetto.
Michelle Naef (1 month ago)
I'm of the 5% that doesn't shop at Walmart in the US.
mike askme (8 days ago)
@Michelle Naef i use to be in that group until Walmart forced my area grocery store to close, now i have no choice.
Karlos (1 month ago)
Reminds me of how Starbucks failed in Australia
Patrice C. (1 month ago)
maybe its just because American are not able to do good business. They are just lets tell good in USA for the rest of the world its another song
Nodak81 (1 month ago)
Just one more reason they continue to slowly fail here in the US too. These big American companies are so obsessed with globalization that they neglect the American customers that made them a huge company to begin with. Retailers and car manufacturers are all guilty of this.
Silent CG (1 month ago)
Walmart is already a cancer on america, i hope it fails in japan.
Heavy Metal Jongdae (1 month ago)
The background music sounds like the Powerpuff girls theme.....
CLIPPING POINT MEDIA (1 month ago)
Should do a story on how Walmart fails everywhere it goes outside of America and Canada
Reaper6207 (1 month ago)
Ha no shocker here. Walmart knows nothing of culture.
Ridhima Joshi (1 month ago)
If you want understand what the public wants and not localis according to their preference , I am sorry you're gonna fail.
Stephen Sellers (1 month ago)
The Japanese people are smart. Stop Walmart before it takes over Japan. It will be worse than Godzilla in the 70's and 80's. I saw what he did to Japan along with the crackin.
Stephen Sellers (1 month ago)
I want to see the mom and pop store again it was a better time.
Stephen Sellers (1 month ago)
Please close Walmart please go under.
Stephen Sellers (1 month ago)
Everyone hates Walmart but we still shop there is wish it would go out of business. I hope I live long enofe to see it collapse
Spencer Camp (1 month ago)
There’s is a lack of grocery infrastructure in Japan, particularly Tokyo and Kyoto. I went there and was like, how is there not more food stores? I’m not saying Walmart is the solution, but some grocery store that figures out Japan has a huge opportunity because there’s massive unmet need there.
mike askme (8 days ago)
@Spencer Camp, i lived in Tokyo for a year and had no trouble in finding grocery stores, maybe you did not look hard enough or maybe you did not understand what the buildings were.
Cosmo Coralles (1 month ago)
Because they're not americans. There you go.
Warren Mundell (1 month ago)
Walmart does well in China, especially food. They offer live fish, chicken feet (that sells at a premium , more than chicken breast), and lots of other food that Chinese people prefer.
Jason (1 month ago)
most smaller towns/cities in america only have walmart. there is no where else to shop unless you drive an hour or more away from your house so walmart is the only choice for a lot of people. why would anyone want to pay more at a local grocery store? they just go to walmart and pickup up other non food items while they are there as well so they only have to make 1 stop.
Jason (8 days ago)
+mike askme we still have local grocery stores all over. it didn't put them out of business. lots of people still shop at them but i don't because they are more expensive and the products they sell aren't as good. i do go to publix sometimes because they carry stuff that walmart doesn't have .
mike askme (8 days ago)
@Jason "smaller towns/cities in america only have walmart." yeah because Walmart moved in a closed down local grocery stores, you really need to google "what happens when walmart moves in" .
Mezquita Mezquita (1 month ago)
I still buy my Japanese rice and salmon at Walmart
GYYYO (1 month ago)
Costco is succeeding in Japan because they have established themselves as an American company brand with totally different shopping experiences from regular Japanese supermarkets (I think that can be said also to the American Costco marketing strategy). Costco stores in locations where access by cars is easy. Walmart/Seiyu, on the other hand, is pushing the “Walmart” shopping experience within the Seiyu brand, and that is confusing to the Japanese consumers and do not fit the typical Japanese shopping style, or worse, they don’t find their stores attractive, because many of their stores are old and have haphazardly been converted to the Walmart look.
MG (1 month ago)
Walmart also failed in Germany hahaha
Ronaldo River (1 month ago)
Blah blah blah says the "expert" simple why would Japanese people go buy overpriced chinese products?
Sajjan Virdee (1 month ago)
I feel like y’all are overdoing this whole series of American brands flopping overseas. I’m glad local businesses are doing better...
Lockon Stratos (1 month ago)
Walmart is the greatest. It's more like Japanese and Koreans are too ignorant and scared to try something new outside their own culture. Walmart has tried to cater to each market but they are too set in their own ways. Your loss. China loves us.
Bernard Finucane (1 month ago)
Walmart failed in Germany too.
Canyon Racer (1 month ago)
Go away Walmart!
dappergen (1 month ago)
walmart should sell cannabis in japan.
Why Are libtards DUMB (1 month ago)
Amazon = Walmart Killer.
Ed Halley (1 month ago)
(The Japanese pronounce AEON more like ee-yown.)
Nathan Ventura (1 month ago)
Shop small, shop local. I don't even remember the last time I've been to a Wal-Mart.
Jack Son (1 month ago)
So, Brazil is where Heaven is- it doesn't contain Shitmart's!!
sailormanariel (1 month ago)
Good for you Japan. Walmart is trying to do away with cashiers and make us scan and bag our own purchases. Soon they'll make the customers restock the shelves as well.
Randy Dichoso (1 month ago)
Rebrand Seiyu to compete with Aeon. Make it more Japanese.
Party (1 month ago)
Walmart is just a dropshipping company that gets their products from China, so if you can get the original without the markup then why go to Walmart
Greg T. (1 month ago)
This is such a common theme with all companies which is a lack of understanding of the culture. From American companies to Japanese thinking they’re a big deal in their domestic market, so we got to be popular in overseas. From Starbucks, Dunk’n, McDonalds, Yoshinoya, to Famima (a total failure in the US).
Shawn Travels The World (1 month ago)
You will miss us when your government has a gun to the back of your head with you standing over a giant ditch/unmarked grave.
can't bleed now (1 month ago)
Why is CNBC struggling on YouTube
2short99 (1 month ago)
Cause Japan has taste. Walmart also failed in Germany years ago cause they didn’t understand the culture. I applaud any country that doesn’t allow those greedy monsters to profit in their country
Mark Maxwell (1 month ago)
For the same reason Amazon is not doing so well in Australia. Different culture and way of doing things. Ebay was successful because you could shop worldwide. Amazon brands do nog appeal to everyone.
jon tran (1 month ago)
One word: Daiso