WAL-MART'S Global Performance Is Down, Perhaps In China.

WAL-MART released its 2015 financial year performance report, and its operating income declined by 0.7% to 482 billion 100 million US dollars (about 3 trillion and 143 billion 244 million yuan) as of January 31st.

According to S&P Capital IQ data data analysis firms, this is the first annual sales decline since 1980.

WAL-MART believes there are many factors that affect the performance. WAL-MART said the slowdown was due to the weaker performance in China, the UK and Brazil.

The company has adjusted business in Latin America to close 115 stores, and WAL-MART's Asda supermarket chain has suffered losses.

Unlike Brazil and the UK market, WAL-MART's sales in China increased in the fourth quarter.

According to the statistics released by WAL-MART China to the China business newspaper, sales of WAL-MART in China increased by 0.3% in the fourth quarter of ~2016 fiscal year in 2015, and the market share of the hypermarket continued to grow for 12 consecutive quarters.

Although the market in China has achieved a weak growth, it is obvious that it is a drop in the bucket to save the whole WAL-MART in the world.

The latest report of the consumer index indicates that the growth rate of the offline cities is also slowing down.

In the face of increasingly fierce competition, whether retailers can truly take customer as the center after opening stores, and optimize the commodity structure according to regional consumption characteristics and customer needs will become the key to winning.

For 2016, WAL-MART was also not optimistic. It expects revenue to remain unchanged in the 2016 fiscal year, which is much lower than that predicted in October 2015. 3%~4% will grow in 2016. At the same time, WAL-MART also estimated that profits in 2016 would drop by 12% compared with last year.

While the global performance is declining, WAL-MART's Chinese market can still see a bright color.

Combing reporters found that in the first three quarters of 2015, sales of WAL-MART in China increased by 1.9%, 1.2% and 2.9% respectively.

WAL-MART said that the sustained growth of WAL-MART China has benefited from the performance improvement of new store opening and store upgrading.

In 2015, WAL-MART upgraded the 60 stores. In 2016, WAL-MART also planned to open about 30 stores in China, including 2 to 3 Sam stores. It still plans to invest about 400 million yuan for upgrading 60 stores.

The supply chain has become the consensus of retailers, and WAL-MART, who is pursuing "low daily prices", is afraid to slack off.

WAL-MART pointed out that efforts to increase the intensity of nationwide acquisition and build a nationwide supply chain system have already achieved initial success, and the gross profit margin of the company has increased.

Meanwhile, WAL-MART China continues to invest in labor and improve customer shopping experience.

It is understood that in 2015, WAL-MART has opened 9 dry goods distribution centers and 11 fresh food distribution centers in China, covering all the stores nationwide.

WAL-MART said that in recent quarters, the fresh sector's performance in terms of sales and profits has increased, and the overall operating profit growth of the company continued to be higher than sales growth.

Compared to other countries and regions, WAL-MART is increasing the number of competitors.

Investment intensity.

In April 2015, when WAL-MART global president Dong Minglun came to China, he set up plans for WAL-MART to set up about 115 stores in China in 2015 ~2017, including hypermarkets and Sam stores.

These stores will mainly be open.

In particular, WAL-MART has not yet entered the prefecture level city.

According to reporters, in December 2015 and January 2016, WAL-MART China opened 13 new stores.

Most of the new stores are located in Inner Mongolia, Chifeng, Yunnan Lijiang, Shandong Jining, Hubei Xianning and other emerging cities.

According to the latest report of Kantar Worldpanel, stores will still be popular in offline cities in the next few years.

Although international retailers are trying to find new ways of growth, the consumption of their dominant regions (North Canton and provincial capital cities) has been sluggish.

The strong competition, as well as the challenge of the electric business tycoon, is still at a disadvantage.

The traditional retail industry is still in the cold winter, and WAL-MART's life in China is no longer what it used to be.

Only 0.3% of sales in the fourth quarter slowed down significantly compared with the first three quarters.

Du Yanhong, a retail researcher at CIC, told reporters that although WAL-MART's China market performance is good, WAL-MART has always been praised by the industry for its excellent supply chain. However, there still exist food safety problems.

In addition, WAL-MART China is hard to achieve real parity in fresh prices.

In his view, the location of WAL-MART's new store is more like a three or four tier city. Divergent and comprehensive attack can not bring advantages to it, such as the lack of advantages in commodity procurement compared with regional retailers.