|
Shanghai's first Wal-Mart store will open in the Wujiaochang area of this city in early 2005, Yangpu District Commercial Commission recently confirmed. Local retailers, however, don't seem worried about the No. 1 US retailer's entering the domestic market and have even stepped up their own expansion.
The store will occupy the first and second floors of Dalian Wanda Commercial Plaza, which is expected to open in 2005, the commission said. The Wujiaochang area is expected to develop into a major commercial and entertainment hub in three years.
Wal-Mart Stores Inc.'s 18,000-square-meter store will include a children's entertainment facility, a body-building center and a restaurant.
"Wujiaochang area is going to be developed into an education, trade, commercial and entertainment center in three years," said Shi Guanghua, commission director.
"There are only four hyper-markets in Yangpu District serving 1.24 million residents. Wal-Mart has a good chance to have a handsome profit."
Wal-Mart will distinguish its store from domestic hypermarkets by highlighting its fresh vegetables and other food products, something not promoted by most domestic supermarkets, said Shanghai's Vice Mayor Tang Dengjie.
Nearly a fourth of the goods in Wal-Mart will be fresh food.
Wal-Mart's invasion hasn't caused panic among local retailers, who are ready to take on the competition.
"Wal-Mart has sufficient capital, advanced management skills and matured marketing strategy," said Wang Zongnan, board chairman of Lianhua Supermarket, the country's biggest supermarket operator.
"But we also have the advantage of widespread sales outlets and familiarity with the local market. On the other hand, world-level challenges are no news to us," Wang added.
This year, Lianhua will focus on building an efficient procurement and supply chain. The firm aims to have 6,000 stores by the end of 2005, compared with the current 1,500.
The Shanghai store is Wal-Mart's first foray into the East China region. Wal-Mart has signed an agreement with Dalian Wanda Group to open an outlet in Nanjing Wanda Commercial Plaza, and is also talking with government officials in the cities of Ningbo and Hangzhou in Zhejiang Province on establishing stores. It now has 25 outlets in Guangdong and Fujian provinces.
Separately, Wal-Mart is planning to open a members-only Sam's Club store in Beijing in mid-June, its first store in the Chinese capital.
(eastday.com March 17, 2003)
|
