US retail giant Wal-Mart has emphasised a continuing commitment to Asda after selling its 85 German hypermarkets to Metro.
The move will reportedly cost Wal-Mart $1bn (£540m) in pre-tax losses - marking the last in a series of a disappointments for the world’s largest retailer since it entered the German market in 1998.
Observers said the US chain failed to capture an appropriate tone for the European country or establish itself as the cheapest supermarket in the market since German chain Aldi already holds the title.
Wal-Mart also had to retract a clause in its ethics manual, which prohibits romantic liaisons between supervisors and other staff after workers filed a lawsuit claiming the regulations infringed upon their rights.
Wal-Mart vice-chairman Michael Duke said the decision would allow the company to focus on its more successful markets.
“As we focus our efforts on where we can have the greatest impact on our growth and return on investment strategies, it has become increasingly clear that in Germany's business environment it would be difficult for us to obtain the scale and results we desire,” he said.
“This sale positions us to increase our focus on the markets where we can achieve our objectives.”
A spokesman said the UK is still an important focus for Wal-Mart, where it has 300 Asda supermarkets.
“Asda has struggled recently but it has taken a number of measures and its market share has slightly improved,” the spokesman said.
“We are very confident of a turnaround and we are fully committed to Asda.”
According to Wal-Mart, the UK generates a significant proportion of Wal-Mart’s international sales.
Having reached a point of near saturation in the US, the retailer is also looking to expand its presence in other overseas markets, such as China and India.
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