The Pace Of WAL-MART'S Closure In China Continues To Advance.

After announcing the closure of 269 stores worldwide,

The pace of closing stores in China continues to advance.

According to reports, WAL-MART announced that it would close the store in Hefei's cooperative Road South High Road Plaza in June 15th, and the WAL-MART store in Huajin Middle Road, Wuhu, Anhui, will also be closed in June 22nd.

In May 25th, the store in Mingguang Road, Chuzhou, was officially closed.

According to reporters, the closure of Hefei stores, is nearly three years, WAL-MART closed sixth stores in Hefei.

For closing the Hefei store, WAL-MART responded that it was to further optimize the business layout.

Closing two stores in Anhui

In 2008, WAL-MART opened its first store in Shengli store in Hefei. Then WAL-MART began to expand in Hefei, and opened eight stores in 2010 to 2011. They are Shuguang Road store, Tongling Road store, emerald Road store, Mount Huangshan Road store, Shengli Road store, Changjiang East Road store, cooperative Road shop and Wuhu Road store.

But in July 2013, WAL-MART was closed at Mount Huangshan Road store in Hefei, which lasted only two years from opening to closing.

Then, in December 2013, WAL-MART Tongling Road store closed; in December 2014, WAL-MART Shuguang Road shop closed; in January this year, the shop was closed; the April April, WAL-MART Chaohu Health East Road shop closed.

The WAL-MART Hefei cooperative South Road store, which is about to be closed in June 15th, will be the sixth store closed by WAL-MART in Hefei.

At the same time, WAL-MART also announced that the WAL-MART store in Huajin Middle Road, Wuhu, Anhui, will also be closed in June 22nd.

According to the reporter, Wuhu store has been open for 5 years, at present, the store has posted the logo of the pfer, and the company is also discussing with the staff and business.

In addition, in May 25th, the WAL-MART store in Mingguang Road, Chuzhou, Anhui also stopped business.

The WAL-MART store in Huaibei Road, Anhui, was also closed in May 11th. It has been operating for 7 years since its opening in 2009.

WAL-MART closed one after another. It was announced that in January 15th this year, WAL-MART announced that it would close 269 stores worldwide, including 154 stores in the United States, overseas.

115.

For WAL-MART, which owns tens of thousands of stores all over the world, the shop closes less than 3%.

According to reporters, as a global industry

WAL-MART has more than 400 stores in China.

Increase the layout of the three or four line Market

What's interesting is that WAL-MART is opening new stores as well.

In March this year, WAL-MART said at the new year's preparatory meeting that in 2016, China opened about 30 stores, including the 2~3 Sam member store, and invested about 400 million yuan in upgrading and Upgrading about 60 stores.

According to reports, in 2015, WAL-MART opened 23 new stores in China, including 22 hypermarkets and 1 Sam stores.

According to the plan, WAL-MART will continue to open 115 stores, including hypermarkets and Sam member stores, in China from 2015 to 2017.

In addition, WAL-MART's investment in Zhuhai, the first shopping center in China, which has invested about 600 million yuan, is also expected to open in April 2016.

In addition, WAL-MART also said that new stores opened in China, including shopping centres and distribution centers, will increase the development of the three or four line market.

WAL-MART's response to the reasons for its closure is to further optimize the business layout.

When WAL-MART Hefei Tongling road closes, WAL-MART responds that WAL-MART will close some stores with poor performance according to strict market assessment. Although these closed stores account for nearly 9% of the number of WAL-MART stores in China, it is estimated that 2%~3% will only be dragged down from the year to the next year.

According to WAL-MART's earnings report, as of January 31st this year, the company's annual revenue fell 0.7% to 482 billion 100 million U.S. dollars, net profit fell 7.2% to 14 billion 700 million U.S. dollars.

According to S&P Capital IQ data data analysis firms, this is WAL-MART's first annual revenue decline in at least 35 years.

WAL-MART's fourth quarter revenue fell 1.4% to $129 billion 700 million in the last fiscal year, and net profit fell 7.9% to $4 billion 570 million over the same period.

In this regard, Sun Tao, a supermarket personage, told reporters that WAL-MART has been closing stores. "Homogenization competition" is an important reason. "Now the commercial real estate in the city is more and more. The establishment of a commercial complex will lead to the emergence of a large number of shopping centers and supermarkets, which has led to the rise of domestic supermarkets. These local supermarkets are well aware of the needs of consumers, and have taken a large number of sales promotion measures, which has great impact on foreign supermarkets.

To a certain extent, this reflects the fact that foreign supermarkets are not convinced in the Chinese market.

The reason why WAL-MART wants to increase its layout in the three or four tier cities is Sun Tao's view that this is due to the accelerated pace of urbanization. He told reporters that "as China accelerates the pace of urbanization and increases the income of urban and rural residents, the consumption capacity of these groups is also increasing. The demand for shopping malls in three or four tier cities is also increasing, so this also brings opportunities to foreign supermarkets."