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[November 2nd, Beijing] Wal-Mart China announced today a US$1 million commitment to establish the China Retail Research Center at the Tsinghua University School of Economics and Management. The China Retail Research Center is the first academic institution in China dedicated to research of this country’s fast growing retail industry.

At a ceremony today, Lee Scott, President & CEO of Wal-Mart Stores, Inc. and President Gu Binglin of Tsinghua University together inaugurated the new institution. Cassian Cheung, Vice President of Wal-Mart Stores, Inc., President of Wal-Mart China, presented a symbolic check of US$1 million to Zhao Chunjun, Dean of School of Economics and Management of Tsinghua University.

“China is an important partner in Wal-Mart’s success”, said Scott. Since opening its first store in Shenzhen in 1996, Wal-Mart has had a fast growing retail presence in China. Additionally, for more than 20 years China has provided quality products to Wal-Mart stores around the world.

Wal-Mart now has 40 stores in 20 cities around China and employs more than 20,000 associates. Last year Wal-Mart sourced US$15 billion in Chinese merchandise on direct and indirect basis for its 5,500 stores in 10 countries.

China’s rapidly growing economy continues to create unprecedented opportunities for retail corporations like Wal-Mart. Wal-Mart hopes to contribute to China’s economic development. The US$ 1 million donation for establishing China Retail Research Center is an example of Wal-Mart’s long term commitment to China.

Tsinghua University is a world renowned university with strong academic staff and advanced research capability. Wal-Mart’s support for the Center will facilitate China’s participation and cooperation in the international retail field and drive the healthy development of the country’s retail sector.

President Gu Binglin expressed sincere gratitude on behalf of Tsinghua University to Wal-Mart’s generous support to the research and development of China’s retail industry, especially its enormous contribution to the establishment of China Retail Research Center.

Gu believed that, with Tsinghua University’s academic excellence and Wal-Mart’s strong background as the world’s largest retailer, the Center led by School of Economic and Management would bring China’s retail research into a new chapter. He hoped China Retail Research Center would develop into a world-class research institution and boost the theoretical research and management of China’s retail industry.

Retail is playing an increasingly important role in domestic economy. Retail companies account for 10 percent of the companies on Fortune’s Global 500 list. As the largest company in the United States, Wal-Mart has topped Fortune’s list for three consecutive years. Retail sales volume and retail employees has become an engine for social economic growth. Many countries have improved their researches in this field and established their research institutes, like the Oxford Institute of Retail Management.

But the comparatively underdeveloped retail research capability in China limits the country’s soaring retail industry. In 2003 the sales volume of consumer goods totaled 4.58 trillion yuan, and will continue to grow by 10% each year. By 2020 it is expected to reach 20 trillion yuan.

As one of the leading business schools established after the opening and reforming of Chinese economy, School of Economic and Management of Tsinghua University always holds “contributing academic innovation as well as promoting the national economy” as its motto, and has excellent teaching and research capability.

Under the newly established institute, Tsinghua faculty will conduct theoretical research in such areas as customer consumption behavior and psychology, retail technology development, retail channel relationships, retail employment patterns, and retail’s influence on the environment and culture.

The Center will have a consultative committee composed of government officials related to the retail industry, senior managers in retail corporations and leading scholars to guide the Center’s development.

Wal-Mart Stores, Inc. is also a member of the Advisory Board of School of Economics and Management. The Center funded by the Company will exert the advantages of the academic excellence of School of Economics and Management and Wal-Mart’s rich retail experience, and develop itself into a leading and internationally influential retail research institute, thus making contribution to the Chinese economy.