American retail giant Walmart could be making its way down under, according to finance experts.
Earlier this year, Sue Mitchel from The Australian Financial Review predicted Walmart would invest in Coles now that the grocery store has been separated from Westfarmers.
Now, Kevin Moore from Smart Company believes the company is in the perfect financial state and the timing is right to do so.
Walmart did try a similar merger in the UK with Asda, opening up five Asda/Walmart stores, however, Sainsbury then announced a deal to buy a majority stake in the company.
Although it didn’t really work out there, Walmart was left with roughly $5 billion AUD to spend, and Moore believes they have their sights set on Australia.
“Having worked closely with Walmart International over the years, and having spent time at their US and Chinese head offices in Bentonville Arkansas and Shenzhen in Southern China, I can say that Australia has always been on their radar as a natural market to expand into…. There has never been a better time in the economic cycle for US companies to buy Australian assets.”
Do you think the grocery-meets-department-store would see success in Australia?
If you lack self control when entering department stores like Kmart, this is something you need to tell your doctor about.