But the German business magazine Capital reported that Metro had cut prices on 3,000 goods in its Real superstores, unleashing similar cuts by rivals. And while Wal-Mart's earnings and sales have risen for 27 consecutive years, mirroring its proliferation of stores, Metro must contend with the same retail slump that plagues other German stores. Operating profit at Metro, based in Cologne, slid last year to 930 million DM from 1.06 billion DM in 1996. The company expects earnings to rise this year, mainly because of its new acquisitions. For decades, German law has sheltered small storekeepers with strict limits on competition.
Sales are illegal except during uniform two-week periods twice a year.
Stores' closing hours remain among the most restrictive in Europe. Rebates must be 3 percent or less. Even advertising language is regulated to keep competition at bay. With its motto ''Everyday Low Prices,'' Wal-Mart has a different game plan than the Germans. It is a cycle.