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Walmart has more in store for nation

Updated: 2013-10-25 07:26
By Wang Zhuoqiong ( China Daily)

Company needs long-term strategy to play up its strengths: Analyst

The world's largest retailer by sales, Wal-Mart Stores Inc, will open 110 new outlets in China within three years, senior executives said on Thursday.

At the same time, the United States-based company will invest in higher-growth sectors such as e-commerce and real estate.

Greg Foran, Walmart China president and chief executive officer, said that the company's focus in China will be investment and development, while quality should take precedence over quantity as the company grows in the country.

Walmart has more in store for nation

Walmart is being conservative about opening new physical stores. [Chen Cheng / Xinhua]

The retailer has opened 30 new stores and Sam's clubs this year in China. The US retailer has closed 11 other stores and will shutter 15 to 30 other outlets in the next 18 months.

Foran said the closures will represent about 9 percent of the total store portfolio and 2 to 3 percent of sales volume through next year. "It is a natural process as you expand the network [to close locations] that are not performing how you want," he said.

He said that the expansion plan includes more stores in third- and fourth-tier cities from 2014 to 2016, mostly supercenters and Sam's Clubs.

Walmart's high-end membership store, Sam's Clubs, has 10 stores in China, and more are coming.

"The business model is ripe for the burgeoning middle-income and upper-income consumers," said Foran.

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