if you are just joining us a very warm welcome to you this is nazi and live from moscow hear your headlines now the u.n. forges ahead in its efforts to mediate peace in syria with a rush of backing the push for a diplomatic solution to the syrian opposition admits it's being armed from abroad all some countries continue the calls for military intervention. gunmen attacked an afghan government delegation visiting the site where sixteen civilians were killed by a rampaging u.s.

soldier leaving one dead and three injured the weekend massacre has led to widespread fear if anti american rallies held all across the country. and the e.u. approves the second bailout to greece which will see the country's stave off bankruptcy for the time being but while the eurozone crisis rages on the nonstop flow of regulations from brussels continues forcing many firms out of business. to stay with us if you can hear an arts the next day you can discover the pleasures of being one of the world's richest man in the spotlight. hello again oh welcome to the spotlight. on. today my guest is here costs 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 us. 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 the former head of russia's largest fleet and it's for the first time that a russian manager has been hired to run a multi national cup so why did wal-mart choose a. we're asking the new wal-mart senior vice president and chief leverage. live process is one of the most successful and best known managers in russia has worked in the retail business for about thirty years and used to have russia's largest retailer before leaving for america when wal-mart tried to enter the

russian market causes company was among its most possible targets the attempt was unsuccessful but shortly after closing its massive office walmart. a top manager position in its international operations division can offer classes just. this welcome to the show thank you very much i will come to moscow by the way you're not a frequent guest now in this city yeah the first time. what were the chips well we talk about the intrigue later bets well i just said that you got that proposal you admitted it and went to the states what was the motive for you to see yesterday on you know it's amazing experience because what i want is not just the largest company in the world it's from my point of view the company all

sort of for great purpose but it didn't 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 went coca-cola boeing before and moderate according to their revenue much bigger than anybody else and for print for example people. easier to understand the scale of the company their budget of the company for this year is about ten or fifteen percent larger than the budgeted for russian federation as a quote the other three for that is a motive to go for a fight and sheer amount of her to work for the right here but really the main idea was true. during the company who sort of for grid purpose because saving people money so they could live better it's really.

a topic which much of a thought of managers and former corporate listen and your position that you're the senior vice president just says so you're among among among five among ten among fifteen men top managers i am reporting on who is the c.e.o. or president of international. he's reporting through my dooku is this see you all . so so so so you know you're the third in the chain of command and you're among like an old ten who were among fifty top managers of you saying. it's very hard to cook a political it's really a company recruiter british through two point two million associates around the world and certainly largest private employer in the world. about six months ago when you were still work in russia did you see this job was there any intrigue behind this nomination or you just came out of the blue up just a crisis can work for us you know i was invited by my group who is this your four

months and he asked me live what if we invite you to join us. why not it's your friends at work. business partners of business partners or friends or you knew each other with a we. had. opportunity to true with each other about five years ago saw we know each other. i snored me so you just thought that you're right for the job. what's your top priority and warmer is one of the tough measures does the company change is this why they invited you or they want to preserve it. company is changing quickly because the world has changed quickly and my top priority of this year is to develop our business in countries like brazil china. to develop our relationship with

global suppliers it's also my it off responsibility and wall way about ninety thousand suppliers and we have one hundred of them we have about sixty percent of our business and i guess our partnership with such companies can be much better than instantly. you never spent. lots time abroad i mean you you mostly lived in your own country now five months in bentonville arkansas this is different there from life in moscow completely different especially how different. it's much different because here in moscow usually i spent about five to six hours be in traffic jams. in bentonville five minutes from home i can use a bicycle. it's 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 little course of life we practically everything you need for your life. you go to sort of to get ourselves you people like you clear about the cost of life. i mean. you know companies like wal-mart is successful because thinking about cost very much course in korea because trying to see people money so they can live better their main. concern for this to control our costs and that it should be on the d.n.a. it's part of your d.n.a. it's should be something like you're thinking about it on me on the work no you shouldn't have this on your d.n.a. because because the russian russians are different in this lesson by 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 but you know different for sure i have missed

my friends ok i. talk of him by 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 soy a great opportunity to our. soul very much excited to see him again you are rich i mean you rich to extend when you can change your environment and make it comfortable for yourself wherever you are you can grab a bicycle i mean really say whatever well you like but. is it is there still a big difference. for a businessman of your scale living here or living in arkansas. ok you mentioned i can remember this ok i bought a national archives i can tell you that same car in moscow perhaps more expensive i don't know what is the reason for this math it's a reality social probably the tags picks on i think it also their strategy or for

big brands to sell products in russia much dance around and some are the marcus saw . structural fewer expenses completely different kinds of then and last one 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 familiar or you have to learn and then. create new things the business itself is the same we're selling. merchandise we're selling food and the way how we're doing because for sure different and the wal-mart is famous for their everyday low cost every day price structure and as far as normal fresh and retailer she was instructed it is really is a true you know model of sales and discounts and while we have some time there's

a lot of noise like that so well that you know it's not a legend but we have something but it's not short term sales actions like our stores of our competitors just a couple of weeks of one day we're just not going to have something very with that a little prize but that's only for a couple of hours. and medium long for for rollbacks problems ninety days and that's completely different steel or cost approach and provides our customers a great experience to buy merchandise with extremely low prices your x. five 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 and. probably. not just my departure a lot of for the top members of the company now working other companies but same

time i think it's five. built for ever was built for and i guess within the next few quarters company will deliver a one hundred worlds but you do no secret i mean if you yourself admit that your departure from the company really cost did it because they didn't you know some of the moment they joined wal-mart the stock performance jump for twenty percent or is a problem just great for the company somewhat so you should know a secret. you should know if you're going to get it done something 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 care for your business will be very successful. well is it true or do you really believe that absolutely because the only reason we're in business is our customers and their plane cost salary their plane as one source not the owners but this is not the way business is

done in russia isn't in europe in russian a first of all figure about making money and then maybe making somebody happy maybe not i'm much better opinion about russian business than you. so it is changing i suppose a change in terms of the progress we're here from the russian businesses from russia and for the last few years russian retail companies could be in place in the way which western companies spend ages says left cassie senior vice president at wal-mart spotlight will be back shortly after the break so stay where you are tens of. nearly a billion people in the world for knowing country 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 in even get all over the other ones just through all the way round cheese from the terminal you clearly like the upper five. in the dumpster at one am this morning three pm this afternoon on the grill take a made from one dozen dumpster egg whites. delicious breakfast for the family cakes and toast for about a week every year in america we throw away ninety six billion pounds of.

well the british.

market. the global economy. welcome back to spotlight. than just a reminder that my guest on the show today is live houses senior vice president at

war. as we started talking about the difference of making business in russia making business in the united states well you 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 you can listen here and the progress again is amazing we have a lot of public companies in the retail industry in russia. trader and they're a london stock exchange or on russian stock exchanges and the company is. learning how to make a business wish from where we've transparency of accounting we are more focused on the interest of customers and against. or russian. what you can find in

very well developed countries but this distances. resume where europe. well we have already mentioned there it's retail in russia is living through hard times in europe too though in. what about america you said you're. you're going if it's a rising i mean wal-mart 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 with development of commerce and i suppose starting in. a few years ago all the fear of now we can see in a couple years or probably in ten years completely different environment completely different landscape of retail based on commerce to colleges and we're not even.

getting things through the net but people are when you look at all. first of all you don't need to have in many cases physical stores because you have access to millions of us players on the wall to us from your smart phone and question who is better service provider for you giving you better. quality of products but if you let the race is towards doing the transportation will you have to build it and so you will not be building a retail instead you'll be building and climb new system of transportation industry and logistic of you know the distance i mean you get bigger because you can have millions of small small little cars were rushing all around the town i mean this will be a nightmare absolutely and. simply. the excess of custom much the information the transparency of pricing it's changing very 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 if it was part of the sense of you use started by saying wal-mart is the largest company in the world but i doubt that more than ten percent of russian russians would even know this name why in the world well do they know millions of brands the without the love this one this is because wal-mart has never really been in russia they clearly see it in the movies you try to be not you but before you. tried to instill 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 like look through three five years ago yeah but it's interesting that in a museum or for some water mental you can find a memoir signed by some wall from the international priorities and number one priority as you mention was russian when the engine china was laura one day i

am absolutely sure what should be in russia but i don't think it will be in. short on perspective like one or two years ago you were in so that is a priority you mean south. left and never never never trying to get there or do they get in on the memories of their priority list where a company should be probably russia is not just there what just in europe come from market to them but also or potentially are important place to source products as well i suppose we should and it will raise the computers to source products from russia more non-food and food which are more conservative around the world and i was told well let's take a look at what exactly makes russia's retail industry so special in reported by spotlights yulian those in need of. capitalism came to russia bringing to shelves hyperinflation wage delays and the big understanding you know what to do there's

open borders and in one nine hundred ninety 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 they them sounds to discover the basics of market economy they had not been taught then came the privatization 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 natural resources by to wash out homeowners 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 russian fledgling retail industry began showing steady growth the countries the food of nine hundred ninety eight game is a growing one positive thing about it was it own becoming

a big international players to the russian market and gave time for the country's own retailers to grow stronger they basically had to bridge a huge gap in the u.s. the era of wal-mart started in the name didn't sixty's well in russia similar hypermarkets started new a half a century later in two thousand and six russia's retail industry witnessed a merger of two high need chains to form the biggest player on the market up until now the x. five retail like two thousand and eight russia's retail industry got strong enough to withstand the global economic downturn and foreign players like on natural have been steadily expanding in russia the country's all retailers account for a larger segment of the market and that's sent to hold ground. you said that you'd try to untie me. while we're trying to turn to russian market it was the

wrong time but all shunned they were just mentioned i can prove to be pretty successful there that actually they were it i mean and whole russian life not only on the market why why were they more successful because the difference first of all a shot and i came here and first to the market about them twelve years ago i was a early in the year and then market was completely straight and listen you tweeted recently that practically all you. and colleagues would like to work and rush is that true yes that's what they tell you absolutely why do they explain that. because they like it because they like caviar and i mean because it's a means of market. prices and retail prices in this market are huge. wal-mart and dramatically improve the lives of while it's here. with russian people selling their different same products same mission cheaper.

to serve our show so so here you are so so your american colleagues want to come here with what as part of the wal-mart absolutely not by their own i see it because they want to brings us out there that they're dreaming could be one day here with the whole war much opportunity to make business as a matter of fact you mentioned that there that you live in arkansas. that is arthur's arkansas in many most of the companies around there are forces dealing with international sales but in europe and in america but most of why why don't you have a huge office in your view you could view i mean live and work there it will be easier first of all we're trying to be very efficient and if we don't like change of societal store we're here for office responsible for canada and europe and africa. based in london and its people our council under

five. hundred five persons responsible for running the business in all of the surgery just because any staff in bureaucrats cost money our customers should pay for this and would not like it especially bureaucrats like you they cost a lot of money the last question i have roots in the news now the russian company out of good training national is planning to open a chain of supermarkets in the united states only thing about i think it's brilliant. syncro challenge they're trying to all show you the badness so yeah but . i don't think it's serious simple and if it's serious. it's very hard for them to have a really great success but same time nor in their specific person who is the kind of this they potentially can be successful you think because of the potential of there is a chance to be successful in this project well and i know 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 was left classy senior vice president at wal-mart and that's it for now from all of us here if you want to have your sam's club might have someone to mind if you think agent me next time you drop me a line of calgary not ads the t.v. doc i really am let's keep the show interactive we will be back with more. until then play on our team and take. them to.

from. the.

that's.