Global Gateway Store Wal-Mart China Seeks Growth

Walmart is adjusting its global business configuration. Wal-Mart announced that it will close 269 stores worldwide, including 154 US domestic stores and 115 overseas markets. The proportion of closed stores accounted for only about 1% of the total number of Wal-Mart, but it was already the year when Wal-Mart had the largest number of stores closed in recent years. However, for growth and profitable regions such as China, Wal-Mart remains heavily guarded. Wal-Mart China intensively opened 10 stores last December and has opened 3 new stores in January this year. From 2015-2017, Wal-Mart’s goal in China is to open 115. Home new shop.

The 115 Wal-Mart stores closed on the international market, including the 60 recently unprofitable Brazilian stores, which accounted for approximately 5% of the Brazilian market’s sales. The rest of the chain stores that will be closed are mainly small stores that are losing money in other Latin American markets. Looking at the number and distribution of closed stores, the suspension will affect 16,000 Wal-Mart employees, of whom 10,000 will be from the United States. The Wal-Mart Convenience Store is Wal-Mart’s largest store in the United States, accounting for 102 stores. According to media reports, in addition to Wal-Mart convenience stores, the company will also shut down 23 community stores, 12 supermarkets (Supercenter) and 7 stores and 6 stores in Puerto Rico (United States Commonwealth of the United States) in the United States. Discount shopping mall, 4 Sam's Clubs. Of the US stores that will be closed down, more than 95% of the stores in the United States are less than 10 miles away (about 25.7 kilometers) from another Wal-Mart store, and the homogenous competition is serious.

According to analysts, the number of stores closed by Wal-Mart accounted for only about 1% of its global stores, but it was already the largest number of stores closed in recent years, and these adjustments mean that Wal-Mart is re-performing the store's asset portfolio. The assessment will focus on resources in advantageous regions and areas. Wal-Mart also announced that it will close stores in the next fiscal year beginning on February 1st. The company will open 50-60 new shopping centers and 85-90 community stores in the United States. In addition, Wal-Mart will also open 200-240 Wal-Mart hypermarkets and 7-10 Sam's Club stores in the international market.

In fact, Wal-Mart's adjustment in China began in 2013. In 2013, it re-adjusted the focus of China's business but soon announced a new number of new stores. At the end of 2014, Wal-Mart made adjustments to its headquarters and regional office structure, and its operating area division will be changed from 6 to 5. In December 2015, Wal-Mart opened 10 new stores in a month, and at the same time closed the Hefei Changjiang Road East Store. It had previously 3 stores in Hefei. According to Wal-Mart China, more than 90% of new stores have settled in emerging cities. Wal-Mart announced earlier this year that it will increase investment in different businesses in the Chinese market and plans to add 115 stores in the next three years.