皇冠体育app

US-based retailing giant Wal-Mart's business expansion in 皇冠体育app has entered a new phase, as the company's first Beijing store opened last Friday.

"The opening of the Beijing store is the prelude to Wal-Mart's further expansion in northern 皇冠体育app," said Wang Yao, director of the Industry Department of the 皇冠体育app General Chamber of Commerce in a telephone interview.

Though Wal-Mart entered 皇冠体育app in 1996, most of its 皇冠体育app-based stores are located in South 皇冠体育app, mainly in Guangdong Province, and the brand has been absent from major Chinese cities including Beijing, Shanghai and Chongqing.

Wal-Mart has its own business strategy in 皇冠体育app, according to Huang Hai, director of the Bureau of Trade and Markets of the Ministry of Commerce.

Instead of marching towards those major cities in East and North 皇冠体育app, Wal-Mart started from more developed, medium-sized coastal cities in South 皇冠体育app such as Shenzhen, Guangdong Province and Fuzhou in Fujian Province.

After the brand was well-established in South 皇冠体育app, Wal-Mart, with rich experience in 皇冠体育app business and well-trained management personnel, is ready for expansion into other regions of the vast 皇冠体育app market, explained Huang.

Beijing, the capital city of 皇冠体育app, naturally has been given first priority in Wal-Mart's expansion outside the nation's southern provinces. Wal-Mart is planning four more stores this year in Beijing, he said.

This is similar to Wal-Mart's domestic strategy in the United States, where it first started from towns and turned later to big cities, Huang added.

Wal-Mart 皇冠体育app officials were unavailable for comment.

The world's leading retailer had 26 stores in 皇冠体育app by the end of February this year, according to 皇冠体育app General Chamber of Commerce statistics.

The Beijing store is the giant's second store it has opened in 皇冠体育app since March, following the one opened last month in Changsha, in Central 皇冠体育app's Hunan Province.

"Wal-Mart's stores in 皇冠体育app are expected to reach 44 by the end of this year," said Wang.

Besides Beijing and Changsha, cities where Wal-Mart will open new stores include Tianjin, Changchun in Northeast 皇冠体育app's Jilin Province, Shenyang in Northeast 皇冠体育app's Liaoning Province, Shanghai, Guangzhou in South 皇冠体育app's Guangdong Province, and Haikou in South 皇冠体育app's Hainan Province, he said.

Wang told 皇冠体育app Business Weekly that Wal-Mart has planned another 50 new stores within three to five years, and the total number of stores in 皇冠体育app will amount to nearly 100, which is similar to its competitor firm, France-based retail giant Carrefour.

According to its commitment to the World Trade Organization (WTO), 皇冠体育app will fully open its retail sector to foreign investment before January 1, 2005.

Currently, there are restrictions on the location and number of stores opened by foreign retailers. In addition, foreign investors are not allowed to take a controlling stake in Sino-foreign joint venture retail stores.

The planned business expansion in 皇冠体育app reflects Wal-Mart's changing global strategy, said Wang.

Wal-Mart's senior officials announced recently that it is preparing for business expansion outside the United States, as the overseas business has increased more rapidly than its US business.

The company's business volume in the United States reached US$11.79 billion, up 9 per cent year-on-year, while its overseas business grew 17 per cent, attaining US$3.5 billion in May, according to John Menzer, head of the International Department of Wal-Mart.

For the overseas expansion, the company plans 130 new stores this year and another 113 new stores next year. Some stores will be opened through mergers and the acquisition of local retailers, according to Menzer.

With its agreeable shopping environment, the new outlet is going to introduce a new management concept in Beijing's retailing sector, said Wang.

The Beijing outlet is a members-only warehouse. Named Sam's Club, it is a Wal-Mart's chain store.

Located in suburban western Beijing, it offers about 4,000 products, according to Wal-Mart's statement.

(Business Weekly 07/15/2003 page2)