Ex-Tesco director becomes chairman
Wal-Mart has surprised retailers in Germany by changing its leadership. Kay Hafner, chairman of Wal-Mart Germany for four years, has left the company at his own request. His successor is former Tesco European operations director David Wild, who joined the company last year and was head of procurement at Wal-Mart Germany.

Turnover at Germany's Wal-Mart hypermarkets dropped another 4 per cent in the first half of this year. The business has never been profitable, although the retailer has managed to improve cashflow by reducing operational costs.

Last month, Wal-Mart started construction of a distribution centre in Bingen, which should bring the company closer to its objective of being able to control the procurement and logistics of fresh produce by itself.

By the second quarter of next year, the retailer intends to provide the major part of its German stores with frozen and temperature-controlled products from the central distribution centre.

Wal-Mart is also revamping six more of its ageing portfolio of stores and says that it is not looking to acquire or open more stores in Germany at present.

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