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    WAL-MART'S Global Outlet Has A Lot Of Influence.

    2016/1/19 21:41:00 35

    WAL-MARTGlobal OutletsRetail Business

    According to the US WAL-MART announcement, WAL-MART stores, which closed 1% of the total number of stores in the world, will be closed by 102 WAL-MART Wal-Mart Express stores.

    Meanwhile, WAL-MART plans to open 50-60 stores and 85-95 community stores in the United States in the next fiscal year.

    Outside the United States, WAL-MART plans to open 200 to 240 stores, with the largest number of new stores in the world, up to 405.

    In terms of quantity, WAL-MART will be in the United States in the coming year.

    global market

    The number of new stores is still larger than the number of closed stores; from the point of view of the format, WAL-MART's close shop accounts for nearly 40% of the "worst hit areas", which is WAL-MART's convenience store format.

    The 269 door stores also include 23 WAL-MART neighbourhood stores (Neighborhood Market), whose stores are almost the same as convenient stores.

    The closure of 102 WAL-MART express stores and the closure of 23 Neighborhood Market stores meant that the small shops in WAL-MART came to a period of adjustment.

    There are three small shops in WAL-MART: neighbourhood stores, express stores, and Wal-Mart To Go.

    Neighborhood stores in the United States usually open in some small and medium-sized cities, and in big cities, the location is close to the traditional WAL-MART supermarket. WAL-MART realizes the exclusive market of the regional market.

    The store generally covers an area of about 3700 square meters, which is only 1/4 of its traditional hypermarket.

    The "fast and convenient store", which is the end of the announcement, is a mixed small and medium-sized shop in WAL-MART, covering an area of more than 1000 square meters. Sales of commodities include toothpaste and other necessities, including raw and processed products such as fresh meat, dairy products and medicines.

    WAL-MART express convenience store is mainly opened in two situations: one is in small towns that are not large enough to open large WAL-MART stores, and two is not suitable for large city buildings with large stores.

    The latter is a chain store operated by WAL-MART since 2011, and its store is small, basically equivalent to "one dollar shop".

    "Coming to WAL-MART" is a new small shop that has just completed the market test of WAL-MART convenience stores in 2015. Its area is about 400-500 square meters. It mainly operates coffee, cold drinks, snacks, ready to eat products and some electronic products. It only stores 3500SKU products (about 30% more than 7-11 convenience stores). Its products mainly come from the distribution of large WAL-MART stores around the world, and guarantee the same price as large stores.

    In other parts of the US, WAL-MART has closed down other formats.

    store

    Not many, 12 Supercenters chains, Puerto Rico's 7 chain stores, 6 discount centers and 4 Sam Club (Sam's Clubs) chains, which can be explained by Dong Minglun's store optimization portfolio.

    CNBC also believes that behind WAL-MART's move, the company is shifting its focus to Supercenter and neighbourhood chain businesses in highly profitable areas.

    In the Chinese market, WAL-MART opened three small stores called "benefiting" in Shenzhen in 2009. The store was between community stores and convenience stores, but after three years, all 3 stores were closed, and WAL-MART announced the end of the test.

    Similarly, in the international market, the 115 chain stores that WAL-MART will close are mainly 60 unprofitable Brazil chain stores and other small businesses that are losing money in the Latin American market.

    It can be seen that although WAL-MART's convenience store is regarded as WAL-MART's first entry into the convenience store area, it is more like WAL-MART's pition product in the multi format store experiment.

    At the outset, the launch of WAL-MART convenience store was mainly to deal with the threat of developing fast "one dollar shop" and other cheap chain stores, but the convenience store has never been popular in the US market, because these stores are almost the same as WAL-MART's larger scale and earlier community neighborhood stores.

    and

    Wal-Mart

    The convenience of "coming to WAL-MART" which began testing in 2015 is closer to the modern chain convenience store mode such as the 7-11. With the unique advantage of distributing goods and prices, it has solved the bottleneck of the supply chain of the convenience store industry, and the attraction of these new stores is stronger than that of the convenience store.

    More than 95% of the US stores that will be closed will be less than 10 miles (16 kilometers) away from another WAL-MART chain.

    This means that WAL-MART itself has been reassembled, evaluated and optimized for the four convenience stores.

    In fact, WAL-MART CEO Dong Minglun (Doug McMillon) has told investors in October last year that WAL-MART's business has become large and extensive. It needs to assess WAL-MART's portfolio and manage it in a disciplined way.

    The closing shop statement, Dong Minglun once again stressed that actively adjusting the asset portfolio is the essence of maintaining healthy business.


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