Corporate News: Retailer Counters Talk of China Woes
Wal-Mart Stores Inc. is the number two retailer in China in market share. They trail right behind the China based retailer, Sun Art Retail Group Ltd. Despite recent reports by local media, Wal-Mart plans to invest roughly $80.5 million dollars to upgrade Chinese outlets and to fund openings of new stores. Unfortunately for Wal-Mart there have been reports on recent store closures due to higher rent and increased labor costs. This could suggest that Wal-Mart is curbing the potential growth in one of its most strategic markets.
Contrary to those reports, Wal-Mart stands by its past announcement to open a hundred new stores in China over a three year span. “Our aim is to strengthen our business foundation to enable our long-term development in China.” said Greg Foran, chief executive of Wal-Mart’s China Division. Wal-Mart plans on adding 18,000 jobs to its payroll in China. They also plan to invest in better distribution networks and warehouses, which will increase food safety and reduce costs.