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Tag: Wal-Mart Stores

  • Walmart China eyes up to 40 new stores

    Walmart China eyes up to 40 new stores

    Walmart Stores says it plans opening between 30 and 40 new stores in China this year.

    Included in that number will be up to five new Sam’s Club outlets.

    While Walmart achieved a solid performance in its home market last year, its international operations – especially in the UK, are struggling.

    In China, Walmart is seeking to develop new retail models to cater to consumers’ changing shopping habits.

    Walmart China will invest a further RMB300 million (US$43.4 million) in upgrading and refurbishing about 50 of its existing stores and improving its supply chain operation.

    “We will move faster to improve the overall customer experience and continue our strategic alliance with JD.com and to strengthen omni-channel approach,” said Dirk Van den Berghe, president and CEO of Walmart Asia and China.

    Last year, Walmart China opened 24 new stores: 21 hypermarkets and 3 Sam’s Club stores.

    The company said its average basket size in China increased by 5.4 per cent in the quarter ended January and same-store sales rose 2.3 per cent.

  • Wal-Mart Stores mulls Flipkart ownership

    Wal-Mart Stores mulls Flipkart ownership

    Wal-Mart Stores is seeking to pay as much as US$1 billion for a share of India’s Flipkart Online Services to counter Amazon’s foray into the fast-developing eCommerce market.

    Under a proposed agreement, reported by both Bloomberg and the Wall Street Journal, the world’s largest retailer would take a minority Flipkart ownership. Insiders say the terms have not yet been finalised for the deal, which follows on the heels of Amazon CEO Jeff Bezos announcing plans to spend a further $3 billion in India.

    India’s largest online retailer, Flipkart is worth about $16 billion, according to research firm CB Insights.

    India’s online market will expand at an average of 45 per cent annually in the next four years and reach $28 billion by 2020, according to estimates from Kotak Institutional Equities.

    Wal-Mart first established a retail joint venture in India with Bharti Group, which runs the country’s largest telecommunications organisation, Bharti Airtel. Eventually Wal-Mart sold its stake to its partner.

    Meanwhile, Amazon has been making major investments in infrastructure and partnerships in India, so far costing about $2 billion.

    Wal-Mart last month agreed to buy US eCommerce company Jet.com for about $3.3 billion, and put founder Marc Lore in charge of the combined company’s online business.