How Does WAL-MART CEO Think Of New Retail?

Against the trend, overweight entities store at the same time.

The pace of chasing electricity providers has never stopped.

Since last year, WAL-MART has acquired Jet.com, an emerging US e-commerce website.

Electricity supplier ShoeBuy, outdoor supplies business Moosejaw, recently also came out

Brand Bonobos's purchase news.

"In any commercial era, if an enterprise refuses to innovate, it can not keep up with the change of customer demand, and it may be the end of this enterprise at any time.

The same principle applies to physical retail and online businesses. "

A few days ago, Scott Price, executive vice president of WAL-MART global and chief executive of the International Department, said in an interview with reporters that for the latest hot words in the industry, "new retail" is not new. When WAL-MART founder Sam Walton opened the first store in 1962, it was also known as "new retail".

"Retail is changing all the time, and what retailers need to do is adapt to customer changes."

From the first store opened in Shenzhen in 1996, WAL-MART has entered China for twenty-first years.

At the same time, the global retail industry is undergoing tremendous changes. As a global retail giant, WAL-MART announced the closure of 269 stores worldwide in early 2016. As for the Chinese market, two stores in Hefei recently closed and the Shijiazhuang store will be closed next month.

Admittedly, WAL-MART's store and shop operations have been synchronized. WAL-MART's global president and chief executive Dong Minglun proposed in 2015 that the next 3 years plan to increase 115 stores in Huaxin. Recently, the plan has made further progress.

According to the world clothing and shoe net, recently, at the US investment cooperation and exchange meeting held in Guangzhou, WAL-MART signed a memorandum of strategic cooperation with the Guangdong Provincial People's government. In the next 5 years, more than 40 new stores and 1 fresh food cold chain logistics distribution centers are expected to be set up in Guangdong Province, including Sam's member stores.

Against the trend of overweight entity stores at the same time, WAL-MART in pursuit of the electricity supplier's footsteps have never stopped.

Since last year, WAL-MART has acquired the new American business website Jet.com, shoe electric business ShoeBuy, outdoor appliance Moosejaw, and recently came the news of the purchase of menswear brand Bonobos.

After the turning point of physical retailing, there is no doubt that every move of the traditional retail giant has attracted much attention.

Increase investment in private brand

Reporter: what is the difference between Chinese consumers and other overseas customers?

Beth said: first of all, Chinese consumers are very similar to consumers in many mature markets all over the world.

10-15 years ago, Chinese consumers would pay special attention to the freshness of fresh food and whether the products were genuine.

Nowadays, many consumers in China become middle class, which means their lives are more busy and complex, and the demand for shopping will be higher and higher. Moreover, they will think that food safety and authenticity of commodities are basic requirements for retailers.

Now many customers want to buy very unique goods, and they have higher demand for foreign goods, and have higher requirements for the convenience of shopping. Whether they are going shopping now or choosing online shopping, customers want to have a very convenient shopping option.

We are also increasing our investment in private brands, introducing private brands from other markets abroad to Chinese stores.

Now customers can buy goods from Sam flagship stores on the Jingdong as well as shopping at the stores. They can also go to WAL-MART's global flagship store to buy cross-border electric goods from WAL-MART and the United States.

Reporter: what do you think of the new retail problem? What kind of development mode should WAL-MART think of?

Beth said: if we look back at the history of retail development, starting in 1895, a company in the United States called Sears to mail catalogues to customers and then customers to place orders, which was called new retail.

In 1962, WAL-MART founder Sam Walton opened our first store, which was also called new retail at that time.

Retail is changing all the time. What retailers need to do is adapt to customer changes.

Customers will always want high quality products, and have a wealth of merchandise choices, hoping that retailers will be creative enough to meet their needs.

Every company has its own strategy to meet the needs of customers. We have always been committed to becoming the most trusted retailer in the local market, because we believe that trust is very important for long-term development.

Retail is also changing. What we need to do is constantly adapt to the changing environment in the future.

Reporter: how to evaluate WAL-MART's investment in the field of electricity supplier?

Beth said: I think retailers need to creatively meet the needs of local customers when they serve customers.

For example, now WAL-MART's actions in the US are able to integrate the advantages of the local stores in the United States with the online business.

The cooperation between China and Jingdong can enable us to provide global products and local products for Chinese customers, and also enable customers to receive the purchase goods conveniently through the new dada service.

I don't think that 20 years later, no one wants to go shopping in a physical shop. There are always people who want to go to a physical shop to pick their own products. Some consumers may want to choose the best and most quality products for him and send them to his family on time because they are very busy. I hope they can serve the two groups at the same time.

I think online and offline shopping patterns are interdependent. I believe more and more online retailers will gradually open more online stores.

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"Has been increasing WAL-MART's stock".

Reporter: at the beginning of this year, Buffett sold WAL-MART stock. There is a saying that the retail era of pure line is over. Do you agree with this view? What do you think?

Beth said: buying or selling stocks is a personal investment option. We do not judge too much about personal investment choices.

What I can share with you is that I have been increasing WAL-MART's stock and I am very confident.

Looking back at the history of business development, in any era, if an enterprise refuses to innovate and can not keep up with the change of customer demand, it may be the end of this enterprise at any time.

I think for a solid retailer, if a physical retailer can not adapt to the environment and adapt to the change of customers, there will be problems. The same reason applies to online businesses.

WAL-MART has also been very focused on innovation.

Reporter: just mentioned that 5 new stores will be added in Guangdong in the next 5 years. At the same time, many other stores have been closed in other markets such as North America. What are the factors to be considered behind closed shops?

Beth said: just like the growth of plants, if you want plants to grow healthfully, there are always branches that need pruning.

The development of WAL-MART in a place will always look at the development in the next 30 years, including the development of the local business circle, the growth of the local population, the state of the road infrastructure construction and the development of the whole market. We will make predictions on this basis, but this prediction does not always reflect the actual situation over time, and there will be some shops that fail to serve the local customers well.

At this time, we will choose to close some stores.

For the healthy development of retail, it is very important to manage the combination of store business and ensure the healthy development of stores.

Reporter: small community supermarkets and convenience stores were once regarded as the development direction of retailers. Will WAL-MART consider introducing small format stores into the Chinese market?

Beth said: we have small stores in the UK, Japan and the United States. The existence of such stores is mainly due to the balance between the number of customers in the store, the population of the local business circle and the convenience of shopping. Small stores have room for development in China in the future.

At present, with the development of urbanization in China, more and more Chinese people will live in cities. Our investment and development strategy in China now focuses on WAL-MART stores and Sam member stores, which is in line with China's current development trend.

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