On November 21st Wal-Mart announced plans to open 500 new stores in China over the next five to seven years, doubling the number of stores in the country,media said. China is expected to become the world’s largest grocery market by 2023. The Arkansas-based retailer’s sales in China rose 6.3 percent last quarter from a year earlier, well above its global growth rate of 2.5 percent, CNN business news site Nov.
Earlier this year, Wal-Mart announced plans to invest more than $1 billion in its China operations. The company is facing increasing competition from local rivals and online retailers.
Grocery and online shopping are the main drivers of its expansion in China, the company said Tuesday. The company also said it would revamp more than 200 stores in China over the next few years, adding more self-service cash registers( which customers can pay with face)
Gu Jianzhang, senior vice president of Wal-Mart (China) Investment Co., Ltd., said in a statement today that Wal-Mart is implementing a “multi-industry strategy to give customers a more ‘fresh, save money and convenience’ experience,” the report said.
“We will continue to work with Our Partners and Policymakers to accelerate development,” he added. ”
In 2016, Wal-Mart sold its Chinese e-commerce website, 1haodian to JD.com, the second-largest e-commerce company in China after Alibaba. Today, JD.com sells wal-mart merchandise and groceries on its online shopping platform. More than 100 of Wal-Mart’s roughly 400 Chinese stores also act as JD.com’s warehouses.
The partnership with JD.com and further expansion in China put Wal-Mart in a better position to take advantage of China’s growing demand for fresh products and counter rivals such as Alibaba.
Reported that in 2016, Alibaba launched Freshippo. Shoppers must download the Freshippo APP and link it to An Alipay account owned by Alibaba.
According to a 2018 report by Bain, more than half of the orders for Freshippo are online.
The Asian business unit of the British Institute for Grocery Sales said earlier this year that China would overtake the Us as the world’s largest grocery market by 2023, with online sales more than tripling to $205 billion by 2023.
China’s rapidly growing middle class, high smartphone usage and strong Internet connectionhave grocery shopping, the report said.
Wal-Mart entered China more than 20 years ago. As of January, the company had 443 stores in China, including its main Wal-Mart brand and its member-only Sam’s.