April 2, 2013

Walmart to accelerate Chinese expansion with 30 new stores in 2013

Walmart Stores has outlined plans to accelerate expansion in the Chinese market with the launch of 30 new outlets in 2013.

By admin-demo

Walmart Stores has outlined plans to accelerate expansion in the Chinese market with the launch of 30 new outlets in 2013.

The expansion is reportedly a part of its earlier announcement in October 2012, when it announced to launch 100 stores over the next three years.

The retailer will make an investment of CNY500m ($80m) to finance its expansion.

However, the new plan comes at a time when the retailer has closed its stores in Shenzhen, Shanghai and Zhengzhou citing it as a business strategy.

Walmart China president and CEO Greg Foran remarked that the country is an important strategic market for the retailer.

"Our aim is to strengthen our business foundation to enable our long-term development in China," noted Foran.

The initial stores are scheduled to be launched in next six months in cities such as Xinyu, in eastern Jiangxi province, and Shantou, in southern Guangdong province.

Walmart also plans to remodel 50 of its 380 existing stores in China.

It will also launch two hypermarkets in Shenzhen and Dongguang in Guangdong province alongside two new Sam’s Club stores in Hangzhou, Zhejiang province and Suzhou, Jiangsu province.

Investing on the development of distribution centers and warehouses to improve the food safety and quality, and reduce costs is also part of the plan, the company added.

The retailer is set to launch a new distribution center in Wuhan, Hubei province and chilled warehouses in Shenzhen and Guangzhou.

In 2012, Walmart announced that it would add 18,000 jobs to its staff band of 100,000 in China.

The US-based retailer has acquired 51% stake in Chinese e-Commerce company Yihaodian to expand its business in the online turf.

Since its launch, the retailer had been opening 50 to 60 stores annually in the country.