Wal-Mart to open 15 new stores in China

Published on May 18th, 2005

Wal-Mart to open 15 new stores in China
— Uh, ok. And what is the point of this? Isn’t this kind of like the Chinese coming over here to sell us Ford cars?

Wal-Mart, the world’s largest retailer, said it will expand its network in China dramatically this year while also boosting its export business from the country.

The US-based giant plans to open up to 15 stores in China by the end of 2005, chief executive John Menzer told the Fortune Global Forum in Beijing.

“Right now China, percentage-wise, is our fastest growing market,” he said, one day before Wal-Mart was to open a store in Beijing, its 46th in China.

Wal-Mart buys toys, footwear and seasonal goods from China, making it “our largest export country,” he said.

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# 1 Ima Fish said, on May 18th, 2005 at 5:40 am

What’s the point? World domination, and nothing else.

# 2 gyro said, on May 18th, 2005 at 12:54 pm

Well Wal-Mart used to advertise it’s products as being 100% American made here in the US. At least now they can repeat that in China, substituting China for American!

# 3 AB CD said, on May 18th, 2005 at 4:28 pm

Presumably Wal-Mart makes a profit regardless of where they bought the inventory. They have the economy of scale as well as their data mining system which should produce lower prices in China.

# 4 Ed Campbell said, on May 19th, 2005 at 4:41 am

China has already exercised existing options to purchase the controlling interest in their joint venture with Wal-Mart. The target for the next 5 years could bring this up to 100 stores. Which would match the current presence of the French superstore chain, Carrefour.

Frankly, US firms are late to the table, as usual.

More interesting, was a documentary I watched, yeterday, on CCTV9 — the Chinese TV network carried by DirecTV. It was a half-hour show about the day-to-day lives and experiences of foreign CEO’s who moved to China to run joint ventures.

Aside from all I expected, culture shock [one's wife ended up a Tai Chi expert], weather shock [a Scot ain't too used to tropical climes], a Swedish businessman elaborated on his greatest surprise about the whole process: how easy it was to deal with local, regional and national government. They listened and responded with thoughtfulness and alacrity. He’s never before experienced such honesty and care — in the business-government interface — anywhere else in the world.

They actually considered the success of these joint ventures to be the highest priority.

# 5 Mike Voice said, on May 19th, 2005 at 10:15 am

“Isn’t this kind of like the Chinese coming over here to sell us Ford cars?”

Who better than Wal-Mart to show Communists how to run a Capitalist enterprise?

I like the KFC sign, at the left of the store’s sign.

How does “supercenter” translate??

# 6 George White said, on May 21st, 2005 at 9:06 am

A little economic lesson for folks that don’t have a bloody clue.
The prime and only reason WALMART (Or any business) opens a new outlet is to make money.
It is not to provide jobs, or to be a social center. It is not so that it can be a benefit center.
Any benefits to a community or to any individual is entirely secondary to the prime focus of providing acceptable quality goods for the best price they can get in order to make a profit.
If you for one minute think anything different then you live in a fantasy world, and if you go into business thinking otherwise you are going to fail, starve, be up to your butt in debt, and probably all of those things in some form of combination.
No one in their right mind starts a business to break even or to operate at a deficit.
WALMART opens stores where they see the opportunity to make money, no mystery there. Nuff said.

# 7 Zane Anderson said, on July 28th, 2005 at 9:26 am

Of the almost one hundred new stores which WalMart plans to open in China this year only one will be a SuperCenter. It will be called: The Great WalMart of China.

We don’t have to be serious all the time do we?

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