American retail giant Wal-Mart Stores has revealed its plans to expand in China. Wal-Mart Inc. is all set to open 115 new stores by 2017 and will also be remodeling more than 50 other outlets in 2015. The new attempts will be made to trigger the slow economic growth in China.
Wal-Mart’s Chief Executive, Doug McMillon said, “Over the next three years, we will increase investment across our business operations in China, as the country is a top priority for us”. With the upcoming expansion, Wal-Mart will be increasing its presence by almost one third in the country. The expansion plans are a part of its multi-format strategy that will have Sam’s Club formats in some of the cities like Shenzhen, Shanghai and Wuhan from 2015 to 2017.
Wal-Mart has already spent 600 million yuan to remodel about 90 stores and is now planning to invest more than 370 million yuan that will help to upgrade 50 stores in 2015. McMillon opined that the online stores have changed the way the consumers shop for goods, but the physical stores would continue to progress.
The chief executive added that some people like to shop online but some people prefer to select fresh food themselves. The expanding middle-class crowd is encouraging Wal-Mart to move in to the third and four tier cities.
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