Wal-Mart Struggles In Brazil

Wal-Mart Stores Inc. closed 60 stores in Brazil as part of the retailer’s efforts to reorganize its operations in the country and lower costs. Despite its $22 billion in capital investment during the past five years, Wal-Mart generated a 4.5 percent operating profit margin from its international operations, compared with 7.4 percent return posted from its U.S. business. Its problems in Brazil, which include poor locations, inefficient operations, labor problems, and uncompetitive prices, highlight the difficulties Wal-Mart has been facing overseas.