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The trouble with early success. Home Special Report Walmart's mega Flipkart deal. Walmart's mega Flipkart deal. Judith McKenna, a Brit who has headed up the international business since February, tends to lean a bit more toward classic English understatement: Indeed, McKenna and her team bear a Walmart-size responsibility with Walmart-size consequences.
Instead, Walmart is redeploying its capital in the e-commerce sphere, a move driven in large part by its existential battle with Amazon.
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Now it is preparing to duke it out across the globe with its Flipkart deal, investments in JD. The approach looks very different from the Walmart of the past, which was prone to measure success by how many countries it had crossed off its list. Which all goes to say that expanding beyond borders—a process tinged with the subtext of ego, nationalism, and culture clash—is colossally hard. The allure of growth, though, has been too tempting for most companies to ignore.
$15-billion Flipkart-Walmart mega deal: Patience pays off for investors
Walmart got serious about the potential for global expansion in the early s when Wall Street started to question whether it could continue its double-digit percentage revenue increases. Management landed on a strategy that dictated that a third of new growth would come from abroad. To some, the deals seemed more opportunistic than deliberate. Walmart clashed with local unions and just generally struggled to give shoppers a reason to switch from the discounters they already knew and liked.
Walmart pulled out of the country in Add the lure of massive emerging markets, which promise untold profits to those savvy enough to approach them with the right partners, and the retailer came to the realization that it could no longer do everything itself. Now with its various stakes and holdings around the globe, in a lot of places Walmart is starting to look more like an investor than a retailer. But the episode got her thinking that maybe it was time to peek over the parapet after all.
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In , she put her hand up to run a newlyformed small stores division, and the next time she was approached about a move to Bentonville—and a strategy and development role—she went for it. A few years in, she found herself in the middle of a crisis. McKenna started to fly around the country to meet with store managers, eventually visiting every state.
She would sit in the front of the room and just hear them out. They told her was there was too much inventory.
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