US retail giant Wal-Mart Stores plans to open 100 new stores in locations throughout China over the next three years, slowing its pace of growth in the market.
The group’s move to take its foot off the accelerator in China is in line with previously announced plans to scale back its capex levels. In August, the company indicated it intends to “do more with less” in the market and would focus on increasing the profitability levels of its existing stores rather than driving the pace of new store openings.
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Nevertheless, a spokesperson for the group emphasised Wal-Mart remains committed to growing its Chinese business.
“China is a great market,” a spokesperson for the retailer told just-food today (26 October). “We continue to grow in China – our three-year outlook in China projects the opening of over 100 stores and Sam’s Clubs, investment in logistics [and the] creation of over 18,000 jobs.”
Wal-Mart has 378 retail locations in the country and employs around 100,000 people. The company is the second-largest operator in China, behind Sun Art Retail Group, a joint venture between Taiwan’s Ruentex and France’s Auchan.
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By GlobalData
