Walmart Invests 1.2B Dollars into China Market
CHINA - Walmart has recently taken new steps to cement itself as a top retailer in the Chinese market, particularly in the grocery delivery sector. The mega retailer is investing $1.2 billion (8 billion yuan) in its Chinese operations over the next two decades to cover the costs of new distribution centers and grocery delivery services, according to a CNN Business report.
“I think China is going to be a tremendous business opportunity,” Doug McMillon, CEO, said back in June during an investor conference, according to the news source. “We continue to focus on being a strong regional business here.”
Since announcing its latest investment, Walmart has invested $102 million (700 million yuan) in a new perishables-focused distribution center in southern China. The company also revealed earlier this year that it would be bolstering its presence in the Chinese market with 40 Sam’s Clubs planned to open by 2020. Walmart currently operates 443 brick-and-mortar stores in China, including both its Walmart and Sam’s Club brands, CNN Business reports.
“Walmart continues to increase investments in supply-chain logistics in order to…provide our Chinese customers with great fresh products and improve our service,” said Ryan McDaniel, SVP of Supply Chain, Walmart China, in a statement.
Will this recent move to corner the Chinese retail market be one more step on the path to global domination? AndNowUKnow will keep you up-to-date on the details.