WAL-MART Plans To Continue Expansion In China'S Three Or Four Tier Cities

< p > even if experience of personnel turbulence, continuous closings, and the cancellation of disputes with some Chinese owners, the international retail giant < a href= "http://www.91se91.com/news/index_c.asp" > WAL-MART < /a > (thematic reading) (expanding location information) has not stopped the pace of rapid expansion in China.

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Yesterday, WAL-MART China announced that it plans to open about 30 stores and more distribution centers this year. P

Although the scale of this shop has slowed down compared with the speed at which WAL-MART opened more than 40 stores a year, it is still in the leading position among its peers.

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< p > in addition, WAL-MART will continue to invest 580 million yuan this year to upgrade and upgrade over 55 stores.

The move is considered by the industry to be an effort made by WAL-MART to catch up with its rivals and enhance its profitability.

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< p > < strong > continue to expand in the three or four line cities < /strong > < /p >

"P >" in 2014, WAL-MART will continue to adapt to market demand and accelerate business upgrading in China.

Our focus will still be on long-term investment, sound and quality growth.

To this end, WAL-MART is constantly upgrading its operation management in China, investing in more stores and logistics distribution centers, improving operational efficiency, reducing costs, further enhancing price competitiveness, and ensuring product quality and safety.

Ke Junxian, President and chief executive officer of WAL-MART China, is about to take the lead, said Sean Clarke.

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Last October, WAL-MART China announced that 110 new sites, including shopping centres and distribution centers, will be set up in 2014, and more than 19000 new jobs will be created in P ~2016.

This year's new stores will include WAL-MART shopping plaza and Sam member store.

Among them, shopping plaza will continue to develop in a second tier city such as Shanghai, Changchun, Wuhan, Changsha, Chengdu and Nanning. It will also be located in three or four tier cities such as Fuyang, Xingtai, Youxian, Chifeng and Chifeng.

In 2014, WAL-MART planned a total of 2 Sam stores, located in Wuhan and Changzhou respectively.

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Less than P, however, it is worth noting that last October, WAL-MART announced its three year plan to develop in China, one of which is to close 9% of the number of Chinese stores through market assessment.

In April of this year, WAL-MART closed its store in the main city of Hangzhou, becoming the seventh store that WAL-MART has closed in the mainland since March.

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< p > Ke Junxian said that the warehouse type supermarket Sam's member shop has broad prospects for development in China and is especially suitable for the fast growing middle and high income consumer groups.

Because many cities in China are suitable for opening Sam's member stores, it is expected that in the next few years, Sam's club stores will have strong momentum in the Chinese market.

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At the same time, WAL-MART China plans to invest 580 million yuan this year to pform over 55 existing stores. P

In 2012 and 2013, WAL-MART pformed 31 and 45 old stores respectively, and this year it will further speed up the pformation of stores.

The pformation of existing stores includes the adoption of a more reasonable layout of commodities to improve the moving line, upgrade equipment, upgrade parking and traffic conditions, increase energy efficiency and environmental protection for sustainable development, and reduce energy consumption.

All initiatives are aimed at enhancing customer's shopping experience and business performance.

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< p > Ke Junxian also announced that WAL-MART will continue to invest in the construction of logistics network, which indicates that the supply chain is not only the basis for the success of the business of < a href= "http://www.91se91.com/news/index_s.asp" > retail < /a >, but also helps to ensure the quality and quality control of commodities, enhance food safety, reduce costs and optimize inventory.

As of April 30, 2014, WAL-MART opened more than 400 shopping malls in China.

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< p > < strong > earnings challenge is still < /strong > /p >

< p > reporter noted that in the near future, the dispute over the cancellation of the contract in the WAL-MART region of China many years ago was not opened. The Chinese owners thought that it was most likely that WAL-MART developed too fast in the past few years, and now the retail market is low.

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< p > the owner involved in the dispute revealed that Chen Yaochang still took charge of the WAL-MART China region when he signed the contract many years ago. At that time, WAL-MART advocated the speed of expansion. But after Chen Yaochang left, WAL-MART China began to take profits as the most important index. Therefore, its opening strategy has been adjusted obviously. Some shops with low profitability assessment may not be able to open business, or the stores that have been opened will be closed.

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< p > WAL-MART China has not responded to the above dispute, but it admitted that there are indeed some plans to close some poorly managed stores in China recently, because some of the stores have too little profit contribution, so closing some stores is conducive to WAL-MART's long-term development in China.

The industry believes that this also reflects WAL-MART's intention to tilt toward the profit centre.

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< p > according to the latest China franchise development report released by China Chain Store Association yesterday, the growth rate of total number of franchised 120 stores and franchised stores in 2013 was narrowed compared with last year, down by 4% and 2.9% respectively, and the rate of opening up has slowed down.

Second, operating costs continue to rise and profitability is facing challenges.

In 2013, the operating costs of franchised enterprises continued to rise, especially in terms of human cost and rents. The rental cost of 68% of the concessionary enterprises increased by more than 5% over the previous year, and the rents of 20% enterprises increased by more than 10%.

The continued increase of cost has compacted the profit margin of enterprises, and the increase in costs has extended the expected period of investment recovery. Nearly half of the top 120 enterprises believe that the investment return period in 2014 will be extended.

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< p > "under such circumstances, the market is going down, the electricity supplier is impacting and the cost is rising. The profit of WAL-MART's traditional retailers will become more and more profitable in China in future. Therefore, in addition to the global shrinkage plan, the existing stores can also be upgraded and upgraded.

WAL-MART has a number of stores in China for many years. Compared with today's new projects such as DHL, these old stores are definitely lacking in hardware. Nowadays, shopping is very particular about experience, so investment and pformation is the only way to catch up with competitors.

In fact, WAL-MART's strategy is very consistent with the current retail market situation. For example, although it currently has about 30 new a href= "http://www.91se91.com/news/index_c.asp" stores, < /a > every year, due to the increased pressure, the speed of the more than 40 new stores has slowed down compared with the previous year, while some of the poor shops have also closed their stops, and the old ones can also be retrofit to increase passenger flow and consumption, which increasingly reflects the profitability challenges faced by retailers in recent years.

Mr. Shen, a senior retailer with many years of experience in large retail enterprises, Mr. Shen.

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