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Tag: Walmart

  • Walmart reduces Li & Fung reliance

    Walmart reduces Li & Fung reliance

    Walmart, the world’s largest retailer, says it can take in-house a few of the inventory sourcing it has beforehand contracted out to Li & Fung subsidiary Direct Sourcing Group.

    It expects by dealing with its personal sourcing, it should scale back prices in its provide chain.

    Wal-Mart stated in a press release: “We have now made a enterprise choice to switch sure sourcing features for Wal-Mart in-house, and as such will work collaboratively with DSG to make sure a clean transition over the subsequent a number of months.”

    DSG retains the enterprise of sourcing merchandise for Walmart’s Sam’s Membership operation, which has 648 shops within the US.

    The US firm has partnered with Li & Fung for nearly 5 years. On the time the contract was introduced in 2010 the 2 corporations estimated the sourced merchandise can be value round US$2 billion a yr. They stated they might type a three way partnership, Direct Sourcing Group.

    However two years later Walmart backed out of that plan, deciding to not take up its shares however to retain Li & Fung as a sourcing provider.

    The Hong Kong firm has declined to touch upon the information, first damaged within the Wall Road Journalnewspaper and subsequently reported by Reuters.

    Reuters quoted a analysis word by UBS analyst Spencer Leung, saying Walmart’s transfer was unlikely to have vital monetary influence on Li & Fung, however “will almost certainly set off different main retailers to evaluation their sourcing preparations (with Li & Fung)”.

    Trend model Kate Spade earlier this month stated it had taken sourcing of equipment in-house, however would proceed to make use of Li & Fung for sourcing clothes provides and different providers.

     

  • Walmart China plans major expansion

    Walmart China plans major expansion

    The world’s biggest retailer Wal-Mart Stores believes the best way to achieve profitability in China is to open more stores and lure more customers.

    Walmart China will expand its store network by almost a third between now and 2017 according to CEO Doug McMillon.

    “Our aim is to become an integral part of China’s economy. China is a top priority,” McMillon told a press conference in Beijing.

    Faced with slowing growth in its mature home market, Walmart sees a massive opportunity in China’s rising middle class and booming tier 2 and 3 cities as a means to restoring growth and boosting profits. Cities like Shenzhen and Wuhan.

    But its experiences in China to date have been mixed. Sales declined 0.7 per cent in the quarter to January 31 and same store sales fell 2.3 per cent.

    At the end of January, Walmart had 411 stores in China – and after some underperforming stores are closed should end 2017 with a network exceeding 500.

    The company is also increasing its investment in its online business Yihaodian.com. Launched in 2011 with 18,000 SKUs the online store now boasts more than 8 million products. With more and more Chinese buying online – on both computers and mobile devices – the potential seems unlimited.

    Walmart’s Asian chief, Scott Price, said while the company had seen a softening in sales, it was not all bad news.

    “We’ve gained share in the hypermarket channel.”

  • McDonald’s joins Wal-Mart, Gap, other cos. in raising wages

    McDonald’s joins Wal-Mart, Gap, other cos. in raising wages

    McDonald’s said Wednesday it is raising pay for workers at restaurants that the company owns. Here’s a look at all the big companies that recently have announced they are boosting hourly wages for their employees:

    In February Wal-Mart Stores Inc., the largest private employer in the U.S., said it will boost its minimum pay to $9 an hour in April and to $10 by February 2016. That means 500,000 employees will get a raise.

    TJX Cos., the parent of discount store operator TJ Maxx and Marshall’s, said in February that it will pay all of its U.S. workers at least $9 an hour starting in June.

    Health insurer Aetna Inc. said in January that it will pay a minimum of $16 an hour starting in April. That’s more than twice the federal minimum wage of $7.25, and Aetna said about 5,700 employees will get a raise.

    Home furnishings retailer Ikea said in June that it would increase its raise wages 17 percent on average, bringing its hourly wage to $10.76 on average. Ikea said it will peg its salaries to the cost of living in different locations, and its move means higher wages for about 5,500 hourly store workers.

    Retailer Gap Inc. said in February 2014 that it will set the minimum wage for workers at $9 an hour this year and $10 an hour in 2015.

    McDonald’s Corp. said starting wages will be $1 above the local minimum wage, and its average hourly wage at those stores will be more than $10 an hour, up from $9 an hour. The move applies to about 90,000 workers at about 1,400 restaurants owned by McDonald’s. It has about 14,300 U.S. locations, the vast majority of which are franchised.

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  • Walmart China to add 30 stores

    Walmart China to add 30 stores

    Walmart China plans to open 30 new stores in China this year, according to media reports from China.

    In addition to the store openings, the US-based retail giant says it will invest US$59.11 million in upgrading about 50 existing stores to modernise them.

    According to a report in the Shenzhen Daily newspaper, five or six of the new hypermarkets will be located in the Guangdong province and two will open in undisclosed locations in Shenzhen. The company already has about 80 stores in Guangdong and four distribution centres.

    Walmart has struggled to gain traction in China despite its enormous buying power and the importance of the nation as a product source for its global store network.

    But it has still managed to build a 400-store strong network, despite intense competition from local rivals.

    The Shenzhen Daily said Walmart China had increased both its sales and profit last year.

    It reported the Sam’s Club in Shenzhen’s Futian District is the top-selling Walmart store worldwide.

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