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Lebensmittel Zeitung reports that Wal-Mart is newly confident in its ability to turn around its 92-store German operation, which have been plagued by millions of dollars in losses.

Part of the reason, according to the German division’s chairman, Dr. Kay Hafer, is that the company’s operations and logistics have been revamped, and now is tied into Wal-Mart's worldwide procurement network and able to offer a broader range of SKUs at better prices.

"In the early days we made many promises that we were not able to keep,” Hafer told the paper, saying that the company has learned “not to take the second step before the first has been completed.”

Hafer says that the customer count at the company’s German stores is up by more than three percent in 2004, though he does not offer specific financial details; analysts, however, say that they believe that there has been no volume upswing, and that the company will continue to face difficulties.
KC's View:
The thing about Wal-Mart is that it has the time, money and bench strength to make any situation work.