smithing has developed from a craft into an industry. where rough wrong turns into words of beauty. and where a village called newspaper hi jimmy. russia . welcome back here with r t here's a look at the top stories the syrian opposition wants for military forces to step in a minute weapons are coming from abroad as security council foreign ministers mad to try to break the deadlock in the reports of escalating violence. the u.s. rushes to apologize for what it calls an isolated incident after an american soldier shoots down sixteen afghans most of them children but president obama says there is no rush for american troops to leave due to the murders. and griese holds

its breath for rescue cast as euro zone's financiers give the next bailout a green light but a lack of either helping matters like illegal immigration take its toll on the indebted nation. as for the top stories next i tell her nothing talks to the senior vice president of the wal-mart's retailing group to fight out what it's like to be a senior manager at top foreign company. hello again oh welcome to the spotlight. on r.t. . today my guest is here. american papers recently that the world's largest retail. store in moscow but the news was not about moscow russia but about another city. in the u.s.

. what is true is that wal-mart really spent two years trying to enter the russian market before its managers finally gave up wal-mart's first attempt to conquer russia failed they decided to leave but they. left. russia's largest fleet and it's for the first time that it. has been a multi national club so why did wal-mart choose a. we're asking the new wal-mart senior vice president and chief leverage here. live process is one of the most successful and best known managers in russia has worked in the retail business for about twenty years and used to have russia's largest retailer before leaving for america when wal-mart trying to enter the russian market has this company was among its most possible targets the attempt was unsuccessful but shortly after closing its possible office. a top manager

position in the speech international operations division can offer classes just couldn't. this welcome thank you very much i welcome to moscow by the way you're not a frequent guest now in this city yeah. what were the motives well we talk about the intrigue later betts well i just said that he got that proposal you admitted it and went to the states what was the motive for you to see yes to binary you know it's amazing experience because wal-mart is not just the largest company in the world it's from my point of view the company of all source for great purpose it's the largest company in the world i mean among all companies existing in the world you're exactly right. it's

interesting that in case wal-mart is not the company but the country it will be a nineteenth largest economy in the world this is bigger than what i would coca-cola were. before according to their revenue much bigger than anybody else and for print for example people. easier to understand the scale of the company. budget of the company for this year is about ten or fifteen percent larger than their budget of russian federation as a call girl has been there is a motive to go there for a fight and sheer amount temporary work for the radio but really the main idea was true. during the company who served for great purpose because saving people money so they can live better it's really. the topic which motivates a lot of manager so for me to work with this and your position that you're the

senior vice president is so so you're among among among five among ten among fifteen top managers i am reporting on who is the c.e.o. or president or former international. he's reporting control my dooku is they see you all for one more thing so so so so you know you're the third in the chain of command and you're among like a long term who are among fifty top managers of you saying. it's very hard because it's always about really getting rescued an additional two point two million associates around the world so largest private employer in the world. six months ago when you were still working in russia did you see this job was there any intrigue behind this nomination or it just came out of the blue just a crisis coworkers you know i was invited by my group who is this you all for months and he asked me where we invite you to join us. right now

it's your friends at work. business partners of business partners of friends or you knew each other with a we. had. to meet each other about five years ago so all we know each other and. like an old me so you just thought that you're right for the job. what's your top priority and warm as i was one of the sort of measures does the company change is this why they invited you all they want to preserve it. company is changing quickly because the world has changed quickly and my top priority this year is true develop our business in countries like brazil china. to develop our relationship with global suppliers it's also my responsibility and we have all right about

ninety thousand suppliers and with one hundred of them we have about fifty percent for our business and i guess our partnership with such company can be much better than it is today. you never spent. lots time abroad i mean me you mostly lived in your own country now five months in bentonville arkansas is like different there from life in moscow completely different especially if. it's much different because here in moscow usually i spent about five to six hours a day in traffic jams. in bentonville five minutes from home i can there's a crisis at all. it's a completely different environment and it's a very good place to work and then very busy saw. it's a convenient place we've got a lot of life we practically everything you need for your life. you go to

sort of super absolute zero people like you have the cost of life. i mean. you know companies like wal-mart is successful because thinking about cost very much core save in korea because trying to save people money so they can live better their main. can for this to control our costs and that it should be on the d.n.a. it's it should be part of your junaid should be something like you're thinking about it on your own the work well you shouldn't have this on your d.n.a. because because the russian aggression is a different thing this let's go the way russians are very in the style to christian people they they get homesick very soon when they go abroad but it is a fact with me most of my friends but you know different for sure i have missed my friends and. i. the talk of the sky by form but for sure i have missed a lot of them. and now i am for

a couple of days in moscow or story of the great opportunity to. so very much excited to see him again you are rich i mean you are rich to extend when you can change your environment and make it comfortable for yourself wherever your you can grab a bicycle and we will say whatever wear whatever you like but. it is there still a big difference. for the business men of your skill living here or living in arkansas. ok you mentioned i can remember this ok i've gotten out of the car i'm out of there i can tell you that same car perhaps more expensive i don't know what is the reason for this but it's a reality so i'll probably the pics on i think are also their strategy or for big brands to sell products in russia much dance around and some other marcus saw.

structure of your expenses completely different than our plans are going in moscow for sure. the way a supermarket functions in moscow and in the united states in russia in the states is a completely different or is it more or less the same i mean if it is your business for merely or you have to learn then. of new things the reasons itself is the same where selling. merchandise where selling food and the way how are doing because for sure different and the warm up is famous for their everyday low cost and every day long price structure and as far as i know not fresh and retailer shoes and strategy is right it is a true you know lot of sales and discounts and warm we have sometime. in the us not so low that you it's not a legend but we have something but it's not short term sales actions likely in

stores of our competitors just a couple of weeks before one day we just announcement we have something very with get a lot price but it's only for a couple of hours. and medium long for for rollbacks problems ninety days and it's completely different steel or cost approach and provide so fast it was a great experience to buy merchandise with extremely low prices your expired retail group it. posted its first drop in sales since its creation two thousand and six this year are you connecting it with your departure from from the company. i think a lot of different factors including all of the probably. not just my depression a lot of members of the company now work in other companies but the same time i think it's five. built for was built for and i guess within the next few

quarters company will leverage when you build worlds but you do no secret i mean if you yourself admit that your departure from the complete really cost did it because they can you know some of the moment they do a wal-mart store perform a jump for twenty percent or is a problem just bring for the company. or you should know a secret. you should take a given turn suddenly you know that secret. the secret is very simple you should think for the benefit of customers not for the benefit of your business and then your customers scared for your business will be very successful. well is it true or do you really believe that absolutely because they only the reason we're in business is our customers and their plane costs are really their planes as one source not the owners but this is not the way business is done in russia is that in the north in russia they first of all think about about making money and then maybe

making somebody happy maybe not i'm much better for us in business than you. so any change i suppose is changing and the progress we hear from russian businesses from russia and for the last few years russian regional conference have been in place and the way which western companies spend ages says left cathy senior vice president at wal-mart spotlight will be back shortly after the break so stay where you are then. this respectable british gentleman's choice was. to leave jackets and old whiskey.

a much younger wife. and more than twenty years of intelligence service in profit of the soviet union. killed his choice on forty. nearly a billion people in the world are going hungry every day. in the united states even our trash cans are filled with food you just have to go get it all of these perfectly good eggs because one was cracked didn't even get all over the other ones just threw them away right and cheese from the german helps you clearly like. a profile. from the dumpster at one am this morning three pm this afternoon on the grill take is made from one doesn't. egg whites. delicious breakfast for the family eggs and toast for about

a week every year in america we throw away ninety six billion pounds of food. closer jesus is being to view reality show me where the floor my floors are made and can be tested to the limit. knowledge archie goes to the earth. where blacksmithing has developed from a craft into an industry. where rough wrong turn into works of beauty. and where a village called newspaper hides amid the. welcome to the last region russia close. down lives the official anti allocation

joint phone the i pod touch from the i.q. stops to. watch on t.v. life on the good. video on demand exceeds my fuel costs and r.s.s. feeds now with the palm of your. question on the dot com. welcome back to spotlight i'm just a reminder that my guest on the show today is live high seas senior vice president at what. is the process we started talking about the difference making business in russia making business and united states well he said that knowing it better than i and i do and this is only natural you see russian business is changing and really

becoming more like what you can witness elsewhere in the world is that true is this that mean that that russia is catching up or quickly because it's only been twenty years of experience for guys like you and you already catching up first of all even less than three years of the progress. it's is amazing we have a lot of public companies in the retail industry in russia. traded in the london stock exchange or on russian stock exchanges and the company is. learning how to make a business where some way we transparency of accounting we are more focused on the interest of customers and again it's a huge gap or russian retail what you can find in very well developed countries but this distance is. decreasing where europe and. while we have already

mentioned that retail in russia is living through hard times in europe too. what about america you said your. your benefits are rising i mean walmart but. the overall situation with retail what is it in the states. is it problematic first of all we can see probably in the future some technical changes we've developed in coffee corners and i suppose starting in. three years you know all that you have planned now we can see in a couple years or problem ten years completely different environment completely different landscape of retail based on commerce technologists and wal-mart in the world getting things through the net but people are going to do it all. first of all you need to care for many cases physical stores because you have access to millions of

a scale on the waltons from your smartphone and the question who is better service provider for you giving you better. quality of products but if you actually start doing the transportation will you have to build and so you will not be building a retail instead you'll be building and tie new system of transportation industry and logistics of your logistics are really really bigger because you can have millions of small small little cars were rushing all around the town anyway this will be a nightmare absolutely and. center. the excess of customers through information the transpersonal price and it's changing pretty quickly and now customers are not exactly any customer knows exactly what is the price for this product in different stores and can choose the store with the best price for the same product when we started this interview you started by saying wal-mart is no largest company in the world but i doubt that more than ten percent of russian russians will

do you even know this name one in the world well do they know millions of brands say without the not this one this is because wal-mart has never really been in russia they clearly see it in the american movies you try to be not you but before you were. tried to ensler russian market with it was a flop why why didn't it happen i think it was and. it was the wrong time it was a click through three five years ago yes but it's interesting that in a museum or for some walther number one you can find a memo signed by sam walton international priorities and number one priority since he mentioned was russia and india and china was law but one day i am absolutely sure wal-mart should be in russia but i don't think it will be in the short term perspective like one or two years ago you were in so that is a priority even south. left to remember never never trying to get better there and

do that again knollenberg was the memo about their priorities as to where companies should be probably russia is not just what just in europe come from market and in but also potentially are important place to source products and well i suppose we should and it will rate and units of c. to source products from russia both non-food and fruit which we can sell around the world in our stores well let's take a look at what exactly makes russia's retail industry so special in reported by spotlights. capitalism came to russia bringing to shelves hyperinflation wage delays and that they go under standing know what to do there's open borders and then one thousand nine hundred two presidential decree on freedom of trade suggested one of possible solutions to survive teachers and doctors

plumbers and miners people of all walks of life turn to commerce their them sounds to discover the basics of market economy they had not been taught then came the privatisation stage and the prizes including shops were mostly bought out by their own management. and things were easier for those who at the time got a piece of the nature resources pie but the one shot homeowner success wasn't granted competition was high and one had to think of but a logistics and sales strategy is to gain profit and just when the russians retail industry began showing steady growth the country's the food of nine hundred ninety eight game is a blow one positive thing about it was it just won't be coming out big international players to the russian market and give time for the country's own retailers to grow stronger he basically had to bridge a huge gap in the u.s.

the wal-mart started in the nineteen sixty's well in russia i see no hypermarkets started nearly half a century. in two thousand and six russia is a retail industry witnessed a merger of too high need chains to form the biggest player on the market up until now x. five retail. two thousand and eight russia's retail industry got strong enough to withstand the global economic downturn and although some big foreign players like on natural have been steadily expanding in russia the countries all we lose count for a larger segment of the market and that's set to hold ground. you said that you try to turn tell me a. war or try to turn to russian market it was the wrong time but i shunned they were just mentioned i care proved to be pretty successful they did actually they were it i mean and whole russian life not only on the market why why would the more

successful but of the difference first of all i shan't i clear interest for the markets about ten twelve years ago as early when you and the market was completely straight and listen you twittered recently that practically all your him. colleagues would like to work and rush is that true that want to tell you absolutely why do they explain that. because they like it because they like caviar and they're mean because it means a market. price retail prices in this market huge. wal-mart can dramatically improve the level of relative. zillion their. products same mentioned it's cheaper. to serve our shows so so here you are so so your american colleagues world to come here with more as part of the war on absolutely not buy their own i.c.'s because

they want to grease us out there so they're dreaming to be one day here with the whole war to fuck you in just to make prisons as a matter of fact you mentioned that you live in or. that that is after it's dark with so many most of the companies around there are facilities dealing with international sales there but in europe i mean america the most the why why don't you have a huge office in europe e.u. you could you i mean live and work there it will be easy first of all we're trying to be very efficient and we don't like to settle this or we're here for office responsible for canada europe and africa. based in london and its people. council only five percent. only five persons responsible for running the business in all the surgery. because in the

stuff in bureaucrats cost money our customers should pay for this and would not like it especially fear press like you make us a lot of money the last question i have roots in the news that the russian companies are a good trading national is planning to open a chain of supermarkets in the united states only thing about i think it's brilliant. challenge they're trying to show you the badness so yeah but. i don't think it's serious simply time if it's serious. it would be hard for them to have a really great success but sometimes nor in their specific person who is behind all these they potentially can be successful you think that sense of a potential of there is a chance to be successful in this project well and knowing i know what this shows is to try to get you to work for them in the states thank you thank you that was that i was left past the senior vice president at wal-mart and that's it for now from all of us here if you want to have your sense part might have someone in mind to think i was to you next time to drop me a line of calgary not ads the t.v.

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