Wal-Mart Slashes Prices Again in Germany

Wal-Mart Stores Inc.’s German unit cut prices by as much as 20% on more than 100 products, sending its rivals’ shares plunging amid concern about a price war. Wal-Mart Germany, which operates 95 stores, reduced prices on products ranging from vacuum cleaners to socks and said additional cuts are on the way, on a weekly and monthly basis. “This is like a declaration of war,” said Hubertus Pellengahr, spokesman for the HDE association of German retailers. Bentonville, Ark.-based Wal-Mart, the world’s largest retailer, entered Germany in 1997 when it bought the 21-store Wertkauf chain, and immediately cut prices on 1,000 products. Its aggressive price-cutting strategy has already hurt its German competitors. Metro’s shares fall 21% last year, Karstadt fell 11% and Spar fell 55%, while Wal-Mart rose 70%. Wal-Mart has also shaken up rivals in Britain, where it bought Asda Group, the nation’s third-largest chain, in June. Wal-Mart has said it will reduce prices by a total of $10 billion in its fiscal year ending this month. Wal-Mart closed off $2.31 at $66.81 on the NYSE.