Walmart China Announces Five Key Points of Long-Term Strategy
Company will open 100 new stores in three years, create 18,000 jobs and optimize the merchandising supply chain
October 30, 2012
(Oct 30, 2012 BEIJING) - Walmart China has announced a new strategic optimization plan, intended to better meet the product and service needs of Chinese consumers. The optimization plan sets the stage for the company’s continued commitment to growth in China, specifically, over the next three years, the opening of 100 new stores in China, creation of more than 18,000 new job opportunities, investment in more distribution centers and readjustment of Walmart China’s merchandising organization, forging a more efficient supply chain.
Greg Foran, Walmart China President and CEO, said: “To deliver on our mission of saving people money so they can live better, we must achieve greater efficiencies in our business.? We want to improve what we offer to customers by creating a simpler business that is more effective, and so we are embarking on transformation process of our China operations while we continue to invest in the market, opening over 100 new stores in the next three years, enhancing our logistics infrastructure, and creating over 18,000 new jobs and career opportunities for our existing associates. To accomplish this, we aim to:
- Regain price leadership: Implement Walmart’s Productivity Loop, continually improve operations efficiency and reduce operations costs, reduce prices to bring value back to consumers and attract more customers to Walmart stores;
- Grow with a focus on business fundamentals: Enhance store performance, emphasizing compliance and focusing on building our business one store. At the same time, open 100 new stores, providing customers with safe, quality products and services;
- Simplify the business: In order to create a more effective supply chain, Walmart will consolidate merchandising offices nationwide. ?After consolidation, merchandising offices will be combined into eight city offices: Shenzhen, Dalian, Beijing, Shanghai, Wuhan, Chengdu, Xiamen and Kunming;
- Invest in supply chain and technology: By growing the distribution center network, Walmart will introduce high technology applications to establish market leadership;
- Develop energized associates: Walmart will continue investing in corporate culture and talent development of associates in a bid to achieve a more sustainable development in China.
Foran continued: “China is a market with a vast number of opportunities. With our 16 years of development in China, Walmart employs over 100,000 associates. We are excited to be engaged in the upgrading of the retail industry and hope Walmart will enter a new stage of development through optimization, in order to address the increasing consumption power of Chinese consumers and higher requirements for product quality, price and service.”
During the consolidation of the merchandising optimization, the company will fully respect the personal choices of our associates and will be engaged in appropriate communications with relevant associates and partners in accordance with relevant state laws and regulations. The company will provide ample career choices for affected associates by offering them equivalent positions at the same level in various divisions in the home office, regional offices or within the same city/region. Additionally, the company will provide full support and comprehensive training to make sure that associates will smoothly adjust into their new positions. If associates choose resignation from the company, the company will provide them with reasonable compensations in accordance with relevant state laws and regulations.
“Facing the market challenges, we are working with all associates in joint efforts. We are fully confident will the future of China market.? We believe that an organization and business development system with higher efficiency will not only provide associates with better career development platform, but also achieve our goals to serve customers with better services as well as high-quality and low-price products. During the strategic optimization, we respect associates’ career choices, expecting them to continue working at Walmart. We will also maintain a close cooperation with local suppliers to bring Walmart China to next level.”
Walmart entered the China market in 1996, with its first Walmart Supercenter and Sam’s Club in Shenzhen. Today, Walmart operates over 380 stores in China, including Supercenters, Sam’s Clubs, and Neighborhood Markets formats. In a recent China visit, Mike Duke, Walmart Global President and CEO and Doug McMillon, Walmart International President and CEO reemphasized their confidence in the China market and expressed favorable opinions about the strong development potential of the Chinese retail industry. Walmart’s global management team said that Walmart will continue to serve customers locally with products and service they need, so that the company can fulfill the mission of “Saving People Money, So They Can Live Better”.
About Walmart China
Walmart entered the Chinese market and opened its first Supercenter and Sam’s Club in Shenzhen in 1996. Walmart’s global merchandising office was set up in Shenzhen in 2002. Currently, Walmart operates a number of formats and banners in China including Supercenters, Sam’s Clubs, and Neighborhood Markets. We have donated funds and in-kind support worth over RMB65 million to local charities and welfare organizations since entering the China market. Walmart China won awards including The Best Employer, Satisfactory Chain Retailers selected by Suppliers, and Community Service Ambassador.
Tel (Beijing): +0810 5904 7207
Tel (Shenzhen): +8610 2397 3915
Tel: +8610-5904 7203