Content area
Full Text
Wal-Mart's operations in Brazil and Argentina have yet to enjoy the kind of success seen in Mexico, Canada and the United Kingdom. The retailer's constant struggle against uncontrollable economic turmoil, especially in Argentina, has been a sticking point for its business here that has hampered growth.
In Argentina alone, the economic challenges experienced in the last few years are more than most countries experience over several decades-if at all. A revolving door presidency, a crumbling banking system, widespread poverty and a freeze on Argentinean savings accounts add up to one of the most troubled economies in the world. Inflation is spiraling out of control, nearly half the population now lives in poverty and prices for everything from meat to clothing are being raised to offset the peso's depreciation, which has lost nearly two-thirds of its value against the dollar since the peso was devalued.
Argentina is the third-largest economy in Latin America, but represents Wal-Mart's smallest investment internationally. The retailer has just 11 units there, in spite of having entered the country in 1995. But according to Charles Holley, cfo of Wal-Mart's International Division,...