WAL-MART global closed shop China new strategy can restore the decline

is the world’s top 500 WAL-MART boss some disarray.

recently, WAL-MART announced the closure of 269 stores worldwide, including the United States, Brazil, a total of 60, involving staff of 16 thousand people. But on the other side of the Chinese, unexpectedly show a "prosperity" Scene: WAL-MART says that instead of the closed shop, but to deep plowing two or three lines market Chinese, within two months to open 13 new stores. In addition, WAL-MART China will also be carried out in 2016 to operate shopping malls, promote their own brands, improve the origin of imported goods, such as direct purchase, and in the free trade zone to test the water electricity supplier.

is really a good situation? "Third eyes" retail that WAL-MART China district to implement the "package" the new strategy looks beautiful, but many are some Huaquanxiutui, can give investors talk about the story, but with this to reverse the current trend is not easy. As to the roots of the two or three line of the market "this strategy as an example, in the past more than and 10 years, WAL-MART excels in its first-tier cities has not achieved very good results, but more on the regional differences of the two or three line of the market, it is difficult to exert its scale effect and the advantage of supply chain.

for a good illustration of this topic, we collected data from 2005 to 2014, WAL-MART, Carrefour, RT three hypermarkets giants were analyzed (data from Chinese Franchise Association).

first look at sales growth:


next door number growth:


is the last single store sales curve:


comparison of the above data we can draw the following conclusions: through the expansion of stores in 2009 after the acquisition of trust mart and WAL-MART, although the number of stores have sales have been way ahead, but Darunfa left behind, the profitability of a single store is in the home market in the bottom three.

according to statistics, in the past 2015, WAL-MART only 10 new stores, Darunfa is 31 new stores, new stores 62 Yonghui supermarket stores. For WAL-MART, and further increase the first Darunfa gap, and later, Yonghui also look at fiercely as a tiger does step by step, caught in the middle of difficult.  

1, to reflect on the past, the traditional advantage is gradually losing China why WAL-MART’s new strategy as "third at retail attempt an ineffective solution?" that is the real problem of WAL-MART, the traditional advantage is lost, or did not come out to play.

excellent supply chain did not bring good results WAL-MART efficient and harsh supply chain has been praised by the industry. From the access mechanism, the supplier needs to pass a series of WAL-MART certification test. In the distribution process, 201>

Leave a Reply

Your email address will not be published. Required fields are marked *