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 11,500 stores under more than 70 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of approximately $482.1billion, 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 hypermarket and Sam’s Club in Shenzhen in 1996. Until today Walmart has been operating in China for 20 years with about 100,000 associates.
Currently, Walmart operates a number of formats and banners in China including hypermarkets and Sam’s Clubs. Up to 31 Dec, 2016, Walmart has been operating 439 retail units covering 189 cities nationwide; as well as running 8 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 42% of those are at management level (Band 7 or above). 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 hypermarkets 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 Hypermarket and Sam’s Club.
- Walmart Hypermarket
The Walmart hypermarket store is range from six thousand to over ten thousands quare meters, and serves more than twenty thousands of types of fresh foods, clothes, household appliances, grocery and etc. The Walmart hypermarket provides one-stop shopping experiences for our customers. Meanwhile, Walmart hypermarket attracts customers for the neighboring small retailers and restaurants.
Walmart is not only committed to food safety and high quality, but also to corporate mission “save people money, so they can live better”. Walmart hypermarket launched “Worry Free Prices” commodities in all stores nationwide, which saves customers from the trouble of price comparison. Meanwhile, Walmart hypermarket 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 is the high end under Walmart Family, which is the Top 500 global company——Wal-Mart Stores, Inc., named by the retail giant Mr. Sam Walton, founder of Wal-Mart. Since the first Sam’s Club opened in Midwest City in Oklahoma State in April of 1983, Sam’s Club has a history over 30 years. 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 800 chain clubs globally and provides superior service to over 50 million personal members and business members. The first Sam’s Club in China opened in Shenzhen on August 12, 1996. So far, Sam’s Club has developed a total of 13 clubs in China. They are located in Beijing, Shanghai, Shenzhen, Guangzhou, Fuzhou, Dalian, Hangzhou, Suzhou, Wuhan, Changzhou and Zhuhai. In the future, Sam’s Club will continue the investment in China, bringing convenience and benefits to more and more Chinese family.
A Sam's Club store has an average shopping area of 20,000 square meters and offers bulk groceries and general merchandise. To satisfy customers’ needs for higher quality, Sam’s Club only provides either the best product in the category or the best-selling brand. The Club offers 4,000 high quality-to-price ratio items, including categories such as fresh, groceries, household appliances, home, apparel and etc. The Club saves customers from the trouble of product comparison, which also saves their 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 of the location. 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, Changzhou and Zhuhai.
♦ 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. 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. App ordering is more convenient. The Sam’s Club App also helps members easily assess their shopping records, monitor frequently-buy-item list, receive e-newsletter of the latest discounts,; as well as allows customers to apply for membership at the App.
♦ 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.
♦ In Mar, Walmart announced to launch cross-border e-commerce service ‘Walmart Global Shop’, available nationwide on its mobile App, and promised to not only guarantee the authenticity and price advantages of these products but also offer the same return and refund services at its physical stores. The Global Shop channel on Walmart App offers over 200 items ranging from food, wellness, health and beauty aids to baby care from globally well-known sources such as the U.S., UK, Japan, South Korea, Australia and so on.
♦ Walmart (NYSE:WMT), and JD.com (Nasdaq:JD), China’s largest e-commerce company by revenue, announced that they have formed a strategic alliance to better serve consumers across China through a powerful combination of e-commerce and retail. As part of the agreement, Walmart will receive 144,952,250 newly issued JD.com Class A ordinary shares, amounting to approximately 5 percent of total shares outstanding and the companies will partner in several strategic areas.
♦ In Oct 2016，after entering into a strategic alliance to expand the breadth and convenience of online shopping options for Chinese consumers, Walmart (NYSE:WMT), the world’s largest retailer and JD.com (Nasdaq:JD), China's largest e-commerce company by revenue, announced a series of exciting new ways for customers to access high quality products from around the world. The efforts, which are launching during the run up to Singles Day on November 11, will also improve logistics and supply chain functions, cross-border ecommerce and online-to-offline (O2O) ecommerce services for consumers across the country.
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