Retail giant Walmart is to open 30 new stores in China in 2014 as part of its three-year growth plan.
Walmart is also planning to invest around 580 million yuan ($93 million) to remodel over 55 existing stores in 2014 to enhance store operations and optimise customer experience.
“Our focus is still on long-term investment, steady and quality growth, and to do this, we are optimising our operations in China, investing in more stores and DCs, enhancing operational efficiency to lower our costs, improve price leadership while ensuring product safety and quality, and help our customers save money so they can live better,” says Walmart China’s incoming president and CEO Sean Clarke.
Last October, Walmart announced plans to accelerate development in China by opening up to 110 new stores until 2016, including stores and DCs, creating nearly 19,000 new jobs. The new stores will be made up of Walmart Supercenters and Sam’s Clubs.
Supercenters will continue to open in first and second tier cities, such as Shanghai, Changchun of Jilin Province, Wuhan of Hubei Province, Changsha of Hunan Province, Chengdu of Sichuan Province and Nanning of Guangxi Zhuang Autonomous Region.
And it will now enter new third and fourth tier cities, including Fuyang of Zhejiang Province, Xingtai of Hebei Province, Youxian of Hunan Province, Wenshan of Yunnan Province, Chifeng of Inner Mongolia and Nanchang County of Jiangxi Province.
Walmart is planning two new Sam’s Clubs in China, in Wuhan of Hubei Province and Changzhou of Jiangsu Province. Clarke said Sam’s’ outlook is promising, given the business model is especially relevant to burgeoning middle-income and upper-income consumers. With many cities well-suited to this format, the growth of the Sam’s Clubs in Walmart China’s portfolio will be strong for years to come.
Meanwhile, the remodels will include better layouts to improve customer flow, repairs, equipment updates, improved parking and access and increased sustainability features to reduce energy consumption. Such moves are expected to both enhance customers’ shopping experience and improve in-store productivity.
Clarke said Walmart is continuing to invest in the expansion of its logistics network in China.
“A highly-efficient supply chain is the foundation of a successful retail business, and our customers will benefit from improved quality assurance and food safety, reduced costs, and better in-stock levels,” said Clarke.
Walmart China currently operates over 400 stores and has more than 90,000 associates since debuting in the market in 1996.
