Venezuela Nationalizes French-Colombian Retailer Exito

The Wall Street Journal ^ | January 17, 2010 | Darcy Crowe

[Cheap_Hessian]

CARACAS (Dow Jones)--President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half.

"Until when are we going to allow this to happen?" Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito, headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A. (CO.FR).

The Venezuelan leader said that new law may need to be approved to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added.

Almacenes Exito saw some of its stores closed this week by government authorities on accusations that it was increasing prices regardless of Chavez's orders that retailers were not to adjust prices after he devalued the currency to 4.3 bolivars per dollar from the previous rate of VEF2.15.

[Kartographer]

I am sure ‘Zero’ is watching and taking detailed notes.

[HiTech RedNeck]

This move hasn’t made Citgo gas any cheaper has it?

[Recon Dad]

How do you expropriate a retailer? You can close their doors and piss off their customers, but there is no way to keep the thing going because you can't fill the shelves.

This whole thing should end badly for Chavez and my prediction at the beginning of the year stands, by the end of the year he's either dead or gone from the country.

[bert]

I wonder about the American companies. Procter and Gamble for instance. Do they still make Pampers on Hugoland

[chuck_the_tv_out]

I always think ‘nationalizes’ should be in quotes. You can call your theft what you like, but you’re still nothing but a common thief.

[ricks_place]

Hmmm Chavez will take the retailers bank accounts, Real Estate Property, fixtures, and stock of goods. But how does Chavez restock the store shelves?

[reader25]

Next year the headline will be as follows:

President Obama and DemocRATS ordered Sunday the seizure of all privately-owned retail chains on accusations that they raised prices after Federal Reserve devalued the dollar by half.

[ricks_place]

Obama seems to want to nationalize the auto industry, banking, and investment bank sector. Nice place for Democrat Politicians to land like Freddie Mac and Fannie Mae. All political contribution will be directed to Democrats.

[vetvetdoug]

Considering the actions of our current President, Americans need to STFU when it comes to Chavez Nazi actions.

[Cheap_Hessian]

The best excerpt from the article:

Comerso, a new government-run retail chain which seeks to sell its products at "socialist" prices

[Recon Dad]

I can understand oil and other commodities, but retail is pocket change. You’re just pissing off shoppers.

[Recon Dad]

Who's going to sell product to you?

[ricks_place]

Chavez is forcing retailers to keep prices below cost despite devaluation, at least until the coming Venezuelan election is over. He doesn’t want shoppers to see the real devastation to their savings and income. So he makes an example of one foreign retail firm to bully the others. No doubt store shelves are emptying fast because imported goods are not arriving at the ports. Chavez was bullying Toyota to assemble more vehicles, fat chance they will send many parts. lol

[bert]

Vendors who export to Venezuela can sell as long as they have a letter of credit confirmed by an American bank.

My experience is that American manufacturers in Venezuela use raw materials such as the elastic in Pampers that is made in America

My experience with the French is that they buy from offices in France and source where stuff is cheap. Hugo lost the purchasers by closing the stores

[livius]

My favorite recent Hugo stunt was when he announced that the wildly popular Venezuelan soap operas, known as culebrones, are now going to have to be based on “socialist themes.” Sounds exciting!

They used to be Venezuelan versions of “Dallas,” all sex and bling. So maybe now they’ll show socialist sex offered by citizens to the commissars to increase their coffee ration, and socialist bling where Hugo steals all the private property? Those are socialist themes allright...

[GeronL]

Chavez knows he is an idiot. He just cut the value of their money in half, of course prices have to adjust. They are going to end up with nothing but Hugo-Marts and what they sell will be unpredictable, like everything else Hugo touches.

I hope France slaps sanctions on Venezuela.

[tet68]

They are going to end up with nothing but Hugo-Marts

But every kitchen will have a rice cooker...
Maybe not now but within five years if socialist
progress continues.

[Maelstorm]

If I were the French I’d set fire to the stores and say screw Chavez. Bunch of socialist thugs they ought to be hunted like dogs and strung up for crimes against liberty and humanity.

[Rome2000]

The Venezuelan upper class obviously doesn't have the balls to do something about that fat communist son of a bitch or he would be gone already.

Only the military can take him out now.