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Wal-Mart China Co., Ltd. and China International Trust and Investment Corporation (CITIC) signed an agreement Wednesday in Shanghai on establishing the East China Wal-Mart Stores Co., Ltd., a key step of Wal-Mart's market expansion in east China.
The world's largest chain store retailer also held an opening ceremony for the Wal-Mart Global Procurement Shanghai Operating Group Wednesday.
Shanghai Mayor Chen Liangyu welcomed Wal-Mart's settlement in the city, noting that China's eastern areas, particularly the Yangtze River Delta, are becoming the engine of the country's economic growth.
After years of cooperation and competition, Jiangsu and Zhejiang provinces and Shanghai Municipality have formed close industrial links. Large population, fine infrastructure, developed economy and high living standards of residents in this region will surely bring about profits to Wal-Mart, the mayor said.
Lee Scott, president and CEO of Wal-Mart Stores Inc., said the year 2002 is a milestone for Wal-Mart since it make its presence in Shanghai and started its expansion from south China to east China.
Scott recalled that when Wal-Mart first came to China six years ago, all employees were American. Currently, only 10 of its 12,000employees in China are American. Scott attributes this to a good combination of the retailer's operating concepts with China's market and consumer conditions.
East China Wal-Mart Stores will set up modern retail outlets in Shanghai and surrounding areas. Wal-Mart Global Procurement Shanghai Operating Group will organize supplier networks in north and east China.
By the end of August, Wal-Mart had set up 22 outlets in nine Chinese cities. In 2001, Wal-Mart altogether purchased 10 billion US dollars of goods in China and exported them to over 4,500 stores all over the world. Its global sales volume amounted to 217.7 billion US dollars last year.
(Xinhua News Agency October 10, 2002)
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