皇冠体育app

Wal-Mart's 皇冠体育app inventory to hit US$18b this year
By Jiang Jingjing (皇冠体育app Business Weekly)
Updated: 2004-11-29 15:21

The world's largest retailer, Wal-Mart Stores Inc, says its inventory of stock produced in 皇冠体育app is expected to hit US$18 billion this year, keeping the annual growth rate of over 20 per cent consistent over two years.

The trend is expected to continue, company officials revealed.

"We expect our procurement stock from 皇冠体育app to continue to grow at a similar rate in line with Wal-Mart's growth worldwide, if not faster," said Lee Scott, the president and CEO (chief executive officer) of Wal-Mart.

An unnamed company official also stated the firm will extend its procurement base from South 皇冠体育app's Pearl River Delta to the North and East 皇冠体育app in the coming few years.

A market rumour says the retailer has its eyes on a 340,000-square metre warehouse at a logistics garden of the Shanghai Waigaoqiao Bonded Area.

Scott covertly visited the site earlier this month, and hopes to own the whole warehouse to accommodate the firm's further expansion in 皇冠体育app.

At present, Wal-Mart has quite limited warehouse resources in East 皇冠体育app.

Xu Jun, Wal-Mart 皇冠体育app's director of external affairs, ruled out the rumour, saying the CEO has never visited that or any other site for a warehouse.

Nevertheless, he said 皇冠体育app is Wal-Mart's most important supplier in the world. The overseas procurement home office in Shenzhen, a city of South 皇冠体育app's Guangdong Province, has played a key role in the firm's global purchasing business.

Wal-Mart shifted its overseas procurement centre from Hong Kong to Shenzhen in February 2002 to better serve the purchasing and exporting business.

"If Wal-Mart were an individual economy, it would rank as 皇冠体育app's eighth-biggest trading partner, ahead of Russia, Australia and Canada," Xu said.

By the end of September, 2004, the top seven trading partners to the Chinese mainland are the European Union, the United States, Japan, Hong Kong, ASEAN (Association of Southeast Asian Nations), South Korea and 皇冠体育app's Taiwan Province, state statistics from the Ministry of Commerce.

Last year, the firm bought US$15 billion products from 皇冠体育app, half from direct purchasing, the other from the firm's suppliers in 皇冠体育app.

More than 5,000 Chinese enterprises have established steady supply alliances with Wal-Mart.

Good quality and low price are the major attractions of the retailing giant.

Insiders point out Wal-Mart's imports from 皇冠体育app have largely influenced the US trade deficit in 皇冠体育app, which is expected to reach US$150 billion this year.

Xu declined to comment if the anti-dumpling measures of the US Department of Commerce have impacted the firm's procurement of textile commodities and household appliances in 皇冠体育app, saying again that 皇冠体育app is an important sourcing base for the firm.

So far, more than 70 per cent of the commodities sold in Wal-Mart are made in 皇冠体育app.

Experts say Wal-Mart's plan of increasing its procurement from 皇冠体育app has granted the firm a positive corporate reputation in the country.

"Buying more products in 皇冠体育app means more job opportunities, which helps the firm win not only the government's hearts, but also the customers' appreciations," said Wang Yao, director of information department under the 皇冠体育app General Chamber of Commerce.

In the United States, poor people find it possible to afford cheap "Made In 皇冠体育app" products for their daily necessities, Wang said.

Wal-Mart, headquartered in Bentonville, Arkansas, entered 皇冠体育app in 1996. It has opened 39 stores, including supercenters, "Sam's Clubs" and neighborhood markets in 15 cities around 皇冠体育app, including Beijing, Harbin and Dalian.

It has recently announced the opening of its first store in Shanghai, slated for the middle of next year.

The firm has a total of 4,900 stores in 10 countries worldwide.

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