Moreover, Asda is primarily devoted to food, not higher-margin general merchandise. Wal-Mart is trying to rectify things. But that's not enough, Hyman insists. They have got to drive more volume through the business, and that means many more stores. Expansion could be hampered, though, by zoning restrictions that limit store sizes in both Germany and Britain.
Acquisitions are a possibility, but pickings are slim.
In Germany many rival chains are owned by families that are in no mood to sell. Potential tie-ups in Britain may not pass muster with regulators. But that will take more time and money.