The world’s biggest retailer Walmart plans to add 115 new stores in China in the next three years, increasing its presence in the country by a quarter, even as big local grocery chains are struggling with increased competition and the rise of online grocery sales. CCTV’s Mi Jiayi filed this report.
Walmart expands its scale in China in face of sales declineThe world's biggest retailer Walmart plans to add 115 new stores in China in the next three years, increasing its presence in the country by a quarter, even as big local grocery chains are struggling with increased competition and the rise of online grocery sales. CCTV's Mi Jiayi filed this report.
- Walmart will open 30 new stores this year, and invest 370 million yuan in remodeling and upgrading 50 existing stores.
- Walmart’s new push in China comes against a background of more customers turning to burgeoning online shopping for daily items.
- Walmart’s net sales in China declined 0.7 percent in the fiscal quarter ended January 31, with same store sales falling 2.3 percent in the same period.
- Last year, China’s online retail sales rose 49 percent to 2.8 trillion yuan.
- Apart from increasing investment in physical stores, Walmart is also seeking to tap into the faster-growing online business through its 51 percent stake in Chinese online retailer Yihaodian. Yihaodian’s share in China’s B2C market was only 1.4 percent last year. Walmart says it is not in a hurry to integrate the business of Walmart and Yihaodian.
- Walmart doesn’t have online hypermarkets in China, but its high-end membership store Sam’s Club does have online business. Sam’s Club sells selected imports and its positioning is different from that of Yihaodian, which is more of an online daily grocer.
- Walmart is not the only foreign grocer struggling in China. The French chain Carrefour’s net sales dropped 5.3 percent year-on-year in China last year. Britain’s Tesco was forced into a joint venture with China Resources Enterprise two years ago, ending ten years of independent operation in China.
Current affair commentator’s thoughts about it
For more on the world of Walmart, CCTV’s Michelle Makori spoke to current affairs commentator Einar Tangen in Beijing.
Current affair commentator\'s thoughts about itFor more on the world of Walmart, CCTV spoke to current affairs commentator Einar Tangen in Beijing.
WalMart Stores Inc., the world’s largest retailer accelerates the expansion in China by nearly a third by opening 115 new stores by 2017.