Walmart China Factsheet
About Walmart Stores, Inc.
Walmart Stores, Inc. was founded by American retail legend Mr. Sam Walton in Arkansas in 1962. Over the past 50 years, the company has served customers and is now the world's largest private employer and retailer. Walmart was ranked on the top of the Fortune 500 list several times and is among the most recognized global brands.
Walmart helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, more than 250 million customers and members visit our nearly 11,000 stores under more than 70 banners in 27 countries and e-commerce websites in 11 countries. With fiscal year 2015 net sales of approximately $485.7 billion, Walmart is on top of the list among Fortune 500 companies, employing more than 2.2 million associates worldwide. Walmart continues to be a retail leader through innovative thinking, leadership through service, and above all, a commitment to saving people money so they can live better
In China, as elsewhere, we follow four beliefs of "Respect for the individual", "Service to the customer", "Strive for excellence", "Act with integrity", and stick to the Walmart tradition of building our business one store and one customer at a time, so as to fulfill our core mission, and continue to make a difference in the lives of our customers, members and associates.
About Walmart China
China is a market with a vast number of opportunities. We are fully confident about the prospects of the Chinese economy and the Chinese market. Walmart entered the Chinese market and opened its first Supercenter and Sam's Club in Shenzhen in 1996. Until today Walmart has been operating in China for 19 years with more than 100,000 associates.
Currently, Walmart operates a number of formats and banners in China including Supercenters and Sam's Clubs. Up to 31 Aug 2015, Walmart has been operating 415 retail units covering 166 cities among 19 provinces, 2 autonomous regions and 4 municipalities nationwide; as well as running 9 distribution centers and 11 fresh products distribution centers.
Walmart China firmly believes in local sourcing. We have established partnerships with more than seven thousands of suppliers in China. Over 95% of the merchandise in our stores in China is sourced locally.
In addition, Walmart is committed to local talent development and diversity, especially the cultivation and full utilization of female staff and executives. 99.9% of Walmart China associates are Chinese nationals. All our stores in China are managed by local Chinese. Furthermore, over 60% of Walmart China associates are female and about 40% of those are at management level. In 2009, the company established the "Walmart China Women's Leadership Development Commission" for driving women's career development. In order to better enhance the capabilities of women leaders, Walmart China established Women's Leadership Workshops in 2013.
From 2015- 2017, Walmart will increase investment across diverse business operations in China by opening up to 115 new facilities, including supercenter and Sam's Club formats, creating more than 30,000 job opportunities. Meanwhile, Walmart will continue to upgrade existing stores, invest in food safety and build on strong partnerships with our Chinese suppliers. Walmart hopes to become an integral part of China's economic development, creating jobs and economic stimulus and working hard to build on a position as a trusted corporate citizen in China.
About Walmart China's Business Formats
Walmart China has many different business formats in China, including Walmart Supercenter and Sam's Club.
- Walmart Supercenter
The Walmart Supercenter store is about 16,908 square meters (182,000 square feet), and serves around ten thousands of types of fresh foods, clothes, household appliances, grocery and etc. The Walmart Supercenter provides one-stop shopping experiences for our customers. Meanwhile, Walmart Supercenter attracts customers for the neighboring small retailers and restaurants.
Walmart designed the Supercenter concept to save customers time and money, and also offers a unique shopping experience based on the Walmart philosophy of "Every Day Low Prices". The Walmart Supercenters launched "Care Free Prices" commodities in many stores nationwide, which saves customers from the trouble of price comparison. Meanwhile, Walmart Supercenters offers the popular commodity combinations and continual improvement of commodity display through market research. It is continually upgrading the stores in order to enhance the shopping experience, satisfy customers' demands, and increase the sales volume.
- Sam's Club
Sam's Club, the division of Top 500 global company——Wal-Mart Stores, Inc. named by the retail giant Mr. Sam Walton, founder of Wal-Mart. Since April of 1983, the first Sam's Club opened in Midwest City in Oklahoma State; Sam's Club has 30 years history now. At the beginning of 90's, Sam's Club starts to enter international market and has become one of the largest membership stores around the world. At the present, Sam's Club has developed 700 chain clubs across the word, provides superior service to over 50 million personal members and business members. In China, the first Sam's Club opened in Shenzhen on August 12, 1996, situated on Shenzhen. Until May 2015, Sam's Club has developed 12 clubs totally. They are located in Beijing, Shanghai, Shenzhen, Guangzhou, Fuzhou, Dalian, Hangzhou, Suzhou, Wuhan and Changzhou. In the future, Sam's Club will keep expansion investment in China, provides convenience and benefits to more and more Chinese family.
The average Sam's Club store is 20,000 square meters and offers bulk groceries and general merchandise. The store offers 4,000 high quality-to-price ratio items, including categories such as fresh foods, dry groceries, household appliances, furniture, clothes, and etc. The store eliminates the trouble of product selection by providing high quality products to its members, which also saves them time and money. The commodities sold in Sam's Club usually come in large and simple composite packages, lowering the costs through purchasing in large quantities. Sam's Club emphasizes on accessibility when it comes to picking its locations. The stores usually provide at least 1,500 free parking spaces for its members.
Walmart China's E-commerce Development
♦ Starting from the end of 2010, Sam's Club's online store（www.samsclub.cn）opened Sam's Club members online shopping direct delivery service in cities where the Sam's Club stores are located, including Shenzhen, Beijing, Shanghai, Fuzhou, Guangzhou, Hangzhou, Suzhou, Wuhan and Changzhou.
♦ In May 2011 Wal-Mart Stores Inc. reached an agreement with Yihaodian, a rapidly developing E-commerce company in China, on the purchasing of the minor equities of Yihaodian.
♦ On 26 October 2012, Walmart announced that it has completed increasing investments in the rapidly developing Chinese online store Yihaodian. Walmart increased its share holdings in Yihaodian to nearly 51%. Walmart's increase in investments will aid the continuing development of Yihaodian, and help Walmart serve the Chinese consumers better through the online platform. Since the Yihaodian started its operations in July, 2008, it has developed quickly along with the Chinese online market. It is estimated that in 2016, the scale of Chinese online market will catch up to US's. Currently Yihaodian has 90 million registered users, providing same day delivery services to customers in 8 cities, included Beijing, Shanghai, Guangzhou, Tianjin, Shenzhen, Dongguan and Suzhou, and providing second day delivery services to 166 other cities in China.
♦ Starting from October in2012, Sam's Club's online store started to provide chilled and frozen foods online, with specific same-day-delivery service in Shenzhen, Guangzhou, Shanghai, Beijing, and Suzhou. In the future, the chilled food direct delivery service will be extended to more areas. It is convenient for our members to buy hundreds of items covering fruit and vegetable, meat, egg, bakery, and the chilled and frozen at Sam's Club online store.
♦ In April 2014, Sam's Club announced the launch of Sam's Club App that can be downloaded for free from the web, after the Sam's Club Weixin account is well recognized among the members. The Sam's Club App not only helps members easily assess their shopping records, monitor frequently-buy-item list, receive e-newsletter of the latest discounts, and place their orders in more convenient; but also allows non members have their membership application completed at anytime anywhere.
♦ In late December 2014, Sam's Club's online store launched both Union Pay online payment and Walmart Gift Card online payment. In particular, the newly issued Walmart Gift Card, only with online payment password, will be accepted not only in Walmart hypermarket and Sam's Club, but also at Sam's Club's online store. The new payment services encourage and enhance the convenience and flexibility to members through wider range of payment channels that are available at Sam's Club's online store.
♦ In May 2015, Walmart announced the launch of its hypermarket O2O platform "Walmart To Go" in Shenzhen. The platform consists of the newly launched "Walmart" mobile shopping APP, "To Go Service Center" in stores for self pick up and multiple online & offline e-payment options. Walmart will pilot "Walmart To Go" in Shenzhen (except Yantian and Dapeng) where it has most stores and provide quality E-Commerce experience to customers with its network of 23 stores.
♦ In July 2015，Wal-Mart Stores, Inc. announced it has acquired the outstanding shares in Yihaodian, taking full ownership of the e-commerce site. Wang Lu, president and CEO of Walmart Global eCommerce in Asia, will lead Yihaodian as part of his overall executive responsibilities. With full ownership of Yihaodian, Walmart plans to launch investment for an accelerated development in e-commerce business.