Wal-Mart reveals 2016 China e-commerce plans
At a press event on Thursday, US retailer Wal-Mart said it would be expanding its business in China. Amid a slowing retail market in the mainland, Wal-Mart would be betting on e-commerce with the opening of up to 110 facilities until 2016 to increase its profitability.
The news came in after an earlier announcement of Wal-Mart China, of which its chief executive Greg Foran said it would be shutting down up to 41 stores in the next 18 months.
Wal-Mart Chief Executive Officer Mike Duke explained that the shift was right on the money. "Customers are using technology more, and especially here in China. We love customers to understand price, and the safety of the product they're purchasing. E-commerce is a great enabler allowing Walmart to grow globally," Duke said.
Duke also said that its expansion plan was inspired by the 30% spike in its e-commerce business in just the first six months of this year. According to global management consulting firm Bain & Co, Wal-Mart was expected to gain 32% composite yearly growth between 2012 and 2015.
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