Wal-Mart Scales Back German Expansion

Wal-Mart Stores Inc. scrapped plans for a massive expansion in the German market, saying it will open only two new stores this year and back off plans to launch 50 by the end of 2002. That goal was set last summer by the retail giant’s top European executive, Allan Leighton, who has since resigned. The company says the original plans were too optimistic, with competitors adopting its strategy of bargain basement prices and loyal consumers sticking with old favorites. Company spokeswoman Andrea Hahn declined to say how many stores Wal-Mart will open by the end of 2002, but said it will be fewer than 50. Wal-Mart closed off 79 cents at $51.71 on the NYSE.