Wal-Mart, the world’s largest retailer, has announced plans to accelerate its expansion into China by adding as many as 110 stores over the next three years, resulting in an almost $100 million investment.
The Bentonville, Arkansas-based firm wants to open the new stores in the world’s second-largest economy at the same time as closing 30 under-performing outlets over the next 18 months.
China is key to Wal-Mart’s international ambitions but it has stumbled in a market where consumers value safe and authentic food over the low prices for which the retailer is known.
The U.S. retailer, which operates about 400 units in China, said last October that it would open up to 110 facilities in the country between 2014 and 2016 and was looking to close 15-30 others over the next 18 months as part of a rationalization process in the country.
Its local rival, Sun Art Retail Group Ltd, said in March it would continue to maintain steady new store expansion after China’s top hypermarket operator posted a 15.2 percent rise in 2013 net profit with an expanding store network helping it shrug off an economic slowdown.
‘China presents one of the biggest opportunities for us around the world to grow our stores and clubs, so its really important,’ Doug McMillon, president of Wal-Mart’s international business, said today in an interview with Bloomberg Television.
Wal-Mart already has 400 outlets across China and Wal-Mart is looking to develop a larger presence in the country’s largest center’s while building bigger stores in third- and fourth-tier cities.
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