Will Wal-Mart Bag Its Holiday Turkey?

Stocks are flat so far this morning, with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) up 0.09% and the broader S&P 500 (SNPINDEX: ^GSPC  ) up 0.1% as of 10:15 a.m. EST.

The micro view
According to the Financial Times, Dow component Wal-Mart (NYSE: WMT  ) is in talks to acquire a controlling interest in Migros from London-based private-equity firm BC Partners. The deal would value Turkey's largest retailer by revenue at $4 billion on an enterprise basis (i.e., including debt). Migros has 888 stores in Turkey across three different formats: supermarkets, hypermarkets, and discount stores.

With a population approaching 75 million and a per-capita GDP that puts it ahead of Brazil and on par with Mexico, Turkey is certainly a promising market. However, Wal-Mart has had mixed success in venturing outside the U.S. In 2006, the company pulled out of Germany and South Korea. It currently faces bribery allegations in Mexico, and the ensuing internal investigation now encompasses Brazil, China, and India as well.

With a well-blanketed home market, Wal-Mart is not the only U.S. retailer that must look abroad if it is to maintain its growth trajectory. In their recent report on Costco (NASDAQ: COST), Motley Fool analysts Daniel Ferry and Isaac Pino identified international growth as one of the two key areas to watch, concluding that "if the growth model that it pioneered in North America is successful abroad, the company's best years could still be ahead of it."

To read their comprehensive assessment of the opportunity Costco shares now represent, click here to request the Motley Fool's premium report, which includes a full year of ongoing updates.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 13, 2012, at 10:30 AM, madmilker wrote:

    Do you think the nice people of Turkey want their currency to go to China.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2152356, ~/Articles/ArticleHandler.aspx, 10/24/2016 12:09:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,231.97 86.26 0.48%
S&P 500 2,150.10 8.94 0.42%
NASD 5,302.56 45.16 0.86%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 11:53 AM
WMT $68.77 Up +0.43 +0.63%
Wal-Mart Stores CAPS Rating: ***
COST $151.00 Up +2.03 +1.36%
Costco Wholesale CAPS Rating: ****