• Wall Street Journal, Friday, August 14, 2009 10:26 AM

Wal-Mart has learned that in the global marketplace, one size does not fit all, and it has been expanding internationally with one eye cocked on local tastes without losing the leverage that allows it to extract the best price from suppliers, Miguel Bustillo reports. It even changes its name, in some markets, to appeal to local consumers. In Brazil, for example, it puts the name Todo Dia on small discount stores catering to the emerging middle class.

"This format is very close to the people," says Francisco Dias, store manager of a Todo Dia in the city of Carapicuiba on the edge of São Paulo. He is battling five rivals, mostly mom-and-pop businesses. Overall, Wal-Mart is the No. 3 retailer in Brazil, behind France's Carrefour SA and Pão de Açúcar Group, which is jointly controlled by a Brazilian family and Casino Guichard-Perrachon SA of France.

It's easy for cultural subtleties to be lost on foreign merchants, says José Rafael Vasquez, Wal-Mart's vp for northeastern Brazil. He believes that after some early mistakes, catering to regional differences within the country itself is becoming a strength. Wal-Marts' buyers understand, for instance, that favorite espresso brands can differ in cities two miles apart.

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