Written by: Ermat
According to a report by NetEase on November 23, Walmart’s first store in China, will close down at the end of the month. In the first half of the year alone, the number of Walmart stores closing in China reached 11, with a cumulative total of more than 80 stores closed in six years.
In fact, since 2016, the development of foreign supermarkets in the domestic market has been deteriorating, and once sold their stakes in China. Walmart’s frequent store closures and withdrawal from the regional retail market is actually a normal situation under the three-way competition of e-commerce, new retail models and high renting fee. Of course, according to the changes in the Chinese market, Walmart has also made a lot of attempts, especially in e-commerce. In 201,1 Walmart acquired 17.7% of No.1 store from Ping An China to get involved in e-commerce business. However, the good times did not last long, and in 2016, Walmart decided to abandon its e-commerce strategy of building its own platform, O2O, in China. It handed over No.1 Store, which it had invested in for years but had no success, to Jingdong in the form of an equity swap, and has since launched a new e-commerce model in cooperation with Jingdong and Tencent.
In 1996, Walmart officially landed in the Chinese market and opened the first Walmart and Sam’s Club in Shenzhen, which once became an example for Chinese retail enterprises to follow. At that time, a large number of enterprises went to the Shenzhen Walmart store to observe its display, shelves, commodities, prices, etc. Even the Daxiao brand of floor tiles wanted to imitate it. In the 25 years since Walmart entered the Chinese market, it has changed its general manager seven times. Since 2012, it is even changing one president of China every two years on average. This has a great impact on the strategic consistency of Walmart China.
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