CEO Mike Duke and Walmart China CEO Greg Foran outline plans to open up to 110 new facilities in next three years
Company will focus development on Supercenters and Sam's Club, remodel existing stores, and make continued investments in logistics network
BEIJING, Oct. 24, 2013 /PRNewswire/ -- During a visit to Beijing today, Wal-Mart Stores, Inc. president and CEO Mike Duke and Walmart China president and CEO Greg Foran told reporters that over the next three years, Walmart will accelerate development in China by opening up to 110 new facilities. The plan calls for developing further in tier-two, tier-three and tier-four cities, and will create nearly 19,000 new retail jobs, all to better serve emerging groups of customers created by the country's urbanization.
"China is a key strategic market for Walmart and we are very well positioned to serve the country’s emerging middle class with great products they can trust," Duke said. "Our management team is committed to continued growth in large and smaller cities across China, and doing it in the right way. Our investments in new stores, innovation, and retail supply chain will create jobs and support China’s plans for growth."
Greg Foran, Walmart China president and CEO,also emphasized that Walmart's focus in China in the future is investment and development, and stressed that quality should take precedence over quantity as the company grows in China.
"In 2013, the retail industry faced challenges and strong competition, but Walmart's confidence in the Chinese market has never been stronger," Foran said. "We adapt to market changes by making adjustments and innovations, and we will modify our operations in China by upgrading the merchandise we sell, especially in fresh food and grocery. We will improve operations and customer experience, establish best-in class food safety practices, and eliminate unnecessary costs in order to build an even stronger business."
Foran outlined Walmart's business plan in China for the next three years, saying the company will focus on the following expansion strategies:
"While we undertake these expansion plans and open up to 110 new facilities, we have announced that we will close some non-performing stores where needed," said Foran. "These closures represent up to nine percent of our total store portfolio, but only two to three percent of our total sales volume through next year. Taking this action is appropriate and enables us to continue to grow in China."
"At the end of October 2012, Walmart China announced five strategic initiatives to strengthen the company's business foundation," Foran added. "So far, progress has been made in building price leadership, simplifying business processes and enhancing our supply chain. We have improved our supercenter merchandising system and extended the range of central procurement to achieve unified management in terms of categories, suppliers and merchandise assortment. All of these efforts are resulting in higher quality and safety standards, better service and ultimately lower costs, which will enable Walmart to reduce to prices of goods to customers, and help us deliver on our core mission to save people money so they can live better."