Tag: WMT

Wal-Mart Stores, Inc. (NYSE:WMT) is “overhauling” segments of its China business. The retailer is eager to modify the segments include more efficient buying offices to control costs,  and new management structures and more efficient purchasing offices to control costs. Despite the fact that the retailer has less profitable in the country, but it still add new stores.
The top U.S. operator of retail stores encounters hard competition in the country from local rivals including China Resources Enterprise, Limited (HKG:0291) and Sun Art Retail Group Ltd (HKG:6808). These retailers have modified shopping and promotions experiences to Chinese tastes.
According to a Bloomberg transcript, the US retailers China’s net sales without including online grocery business increase 6.3% and customer traffic decrease 6.8% in the Q2 from last year.
Due to increase competition in China, economic growth has sluggish with gross domestic product growing 7.5% in the Q2, 2013, that is second consecutive deceleration.
Scott Price, the company Asia chief has said on October 15, that the firm is likely to shut over 20 China stores till 2014, that representing approximately 2.5% of its total sales volume. He also added the closing stores did not have perfect layouts and locations.
Last October the retailer has said it is planning to launch over 100 new stores in coming three years in the Asian countries. Mr. Price also added in his comments that it has merged 29 purchasing offices into eight in 2013, while it has also further consolidating the buying role, but do not provide additional detail for it.
The US retailer is restructuring its China business due the troubles it has face in India, where the firm has operating with Bharti Enterprises Pvt , which is a local operator and has ended a six-year partnership.
The concern staff in China’s merchandise division will be provide with the similar positions in various other units in the country and the retailer will compensate employees that opt to quit. Wal-Mart Stores, Inc. (NYSE:WMT) shares rose 1.65% to $75.60 in last trading session.