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So, I will feel in Poland like at home <img src="/images/graemlins/wink.gif" alt="" />
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Wal-Mart to enter Poland, possibly via take over

From Poland A.M.


American retail store network Wal-Mart officially announced its plans to enter the Polish and Hungarian markets.

The company's executive director Lee Scott said in an interview for the Financial Times on Monday that he is rather looking to take over an existing network than start everything from scratch. "The entrance of the Americans will change the distribution of power on the market, but by how much? It all depends whether they will decide to take over a network of hypermarkets or stores of up to 400 square meters in area. Whichever option they choose, the process of consolidation of the sector will accelerate," said Andrzej Maria Fali&#324;ski of the Polish Trade and Distribution Organization which associates foreign commercial networks in Poland. According to domestic market analysts, the most probable scenario is the acquisition of rather smaller stores or entering as a strategic tenant in shopping malls in smaller cities. (Puls Biznesu, pp. 1, 9) A.K.

Oh, come on... even I don't think Poland deserves this!!!

The day Wal-Mart moves into Russia is the day I will hang myself!

Eric,

do not even say this. I am sure Walmart will be in Moscov in less than 5 years.

Eric,

Wouldn't it be kind of ironic if the rope you used to hang yourself came from Wal-Mart?

Wal-Mart has actually been trying to enter Moscow for several years now. It's only a matter of time... and unfortunately, they will succeed.

This company will not be satisfied until every shopper in the whole world goes to only Wal-Mart and no where else.

Hussar,

***Wouldn't it be kind of ironic if the rope you used to hang yourself came from Wal-Mart? ***

good joke

how are you doing in Poland? Where are you now? I guess, you were going to Rzeszow, right?

I hope you are doing daily notes for your final report to show here in Bella!

Eric,

one more question. How is it that Moscov is one of the most expensive towns in the world? It is even more expensive that NYC. Is it just for businesses? What about regular people and their living costs?

Yes, in terms of business, Moscow is certainly one of the most expensive cities in the world. Depending on the year, it is in either 1st or 2nd place, with Tokyo being the other top city. Office space (and private apartments, too) in certain areas of the city, especially overlooking Red Square and the Kremlin, are astronomically expensive! It makes similar office space in New York seem cheap, actually!!!

Even for regular people, Moscow is very expensive. Real estate especially is among the highest, if not #1, in Europe. If you already bought your apartment in Soviet times, when prices were realistic, then you're the luckiest, because all you have to pay now are property tax and utilities. Otherwise, good luck finding an inexpensive Moscow apartment to live in these days, unless you don't mind living so far away you're practically out of the city.

On the other hand, the average salary in Moscow is a lot higher than in the rest of the country. Not quite European level, but the closest in the former USSR, except the Baltics. Also, Muscovites tend to have the largest amount of "disposable income", meaning money they can spend that does not have to go to immediately to food, shelter, etc.

About 80% of all of Russia's wealth is in Moscow, and virtually the entire Russian middle class exists only in Moscow. This is why all the business exists in Moscow, and how Moscow can afford to be so expensive. Capitalistic business just really does not spread across the whole country. St Petersburg has some, but not enough. And elsewhere, it's mostly a continuation of the Soviet days, except now a private individual will own what was once owned by the government.

Eric,

thanks for the explanation. It sounds resonable. It is a pity because it looks as like Moscow was not really like a rest of Russia. But there are some places which are just... different.

At least good that people have more money than somewhere else.

***virtually the entire Russian middle class exists only in Moscow***

interesting. So who live in the rest of Russia, just the poor people and the extra rich?

I still feel that your heart belong to St. Petersburg

Jaga, basically, you are right. In Moscow, there is the ultra-ultra rich, the ultra-rich, the growing middle class, and the poor. In St Petersburg, there is the ultra-rich, a very small middle class, the poor, and the very poor. In the rest of Russia, there is a small number of ultra-rich, virtually no middle class, the poor, the very poor, and the very-very poor.

Outside of Moscow (even in St Petersburg, you can sense it somewhat, still today) people still live more or less to the socialist-era theory that people should be equal, that no one is any better than anyone else, etc. It is still true today, except it now refers to poverty instead of to society as a whole. Only those involved with economics or politics, or those lucky enough to have more money, think differently.

Even in the mid 1990s, when the Russian economy was collapsing uncontrollably, even Moscow had its serious problems. But Moscow has recovered, because the city just has so much money flowing through it. Despite calls for some of this money to spread out throughout all of Russia, it never happens. Those who have the money will never relinquish control of even a shiny kopek. So, it is up to each individual place to build its own economy FROM SCRATCH. This, obviously, will take a lot longer than it took Moscow.