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Walmart's transformative strategy for China

15 Dec 2014

Walmart has declared a period of “major transformation” in China, announcing plans to open 110 new outlets by 2016. This is due to strong pressure from domestic rivals as well as a surge in online shopping amongst Chinese consumers.

Part of the restructuring strategy, Walmart made redundant about 30 middle-management jobs and about 400 store managers. It also closed roughly 30 under-performing stores throughout China.

China Head, Sean Clarke, is cited saying, because of a potential large market share and consumer research, hypermarkets and warehouse clubs will be a major focus in the company’s strategy for developing in China. Warehouse clubs offer fewer products, however, a greater focus on quality and value than the typical hypermarket. By the end of 2014, Walmart will open 25 new hypermarkets and warehouse clubs.

The objectives in this “major transformation” are to improve quality control, increase efficiency of supply chains and keep costs to a minimum in an increasingly competitive market.

View the original article here.