Walmart plans to increase its penetration in smaller Chinese cities, Bloomberg reports. According to Ed Chan, CEO of Walmart China, the proportion of Walmart stores located in tier one cities is expected to fall to 18% in 2014 from 20% last year.There are also aggressive plans to expand the Sam’s Club operations from the current four provinces to 17 Chinese provinces in five years. Future growth may be pursued through land acquisition as opposed to leasing property due to rising real estate prices.
Last year, Walmart China generated sales of $7.5 billion, or 1.8% of the company’s total, through its 329 stores.
Source: Planet Retail
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