The Cost Dilemma Of WAL-MART's Retail Elephant

In fact, in the past few years, WAL-MART's "pie pie" expansion has made WAL-MART scarred in the development, especially the increase in internal consumption and the downturn in the external retail industry. It has made WAL-MART more difficult in the Chinese market, and internal reform has become a development dilemma that has to be faced. An insider close to WAL-MART told reporters.

The above analysis told reporters that, due to the rapid expansion of WAL-MART, which led to a serious overlap of departments, the company's internal friction increased due to over crossing, plus the increase of personnel costs and rent growth in recent two years, making WAL-MART's development slower and slower.

In fact, WAL-MART has slowed down its expansion in recent years. According to the industry statistics, the average shop opening speed of WAL-MART in China was around 50 before 2012, but from 2013, the speed has dropped to 100 new stores in 3 years.

In a recent statement, WAL-MART said frankly that WAL-MART continued to transform its business according to the rapid changes of customers and markets. Some job changes and structural adjustment were the necessary stages to simplify business processes in the process of transformation.

In October 2013, WAL-MART announced its plan to redevelop its business in China: in the next 3 years, it will open 110 new stores in China, including new shopping centres and distribution centers, while closing or refurbishing some branches.

An insider who asked not to be named told reporters that WAL-MART, TESCO and other giants had great pressure on profits in China, so retailers cut costs in various ways. For example, the number of shop stops in recent years has been continuous, and the merger of TESCO and Huarun is also considered by the industry to be TESCO's "Big Bang" to change the performance dilemma.

In addition, Ding Liguo also said that WAL-MART is still considering this matter from the perspective of cost reduction. In pursuit of performance, since there is not much breakthroughs in sales, we can only consider "saving money". "By the end of the year, management must also be accountable, including the performance of the whole year and the future. Business plan It is also necessary to explain to the board of directors.

But in WAL-MART's view, its expansion in the Chinese market remains unchanged. In WAL-MART's reply to the reporter's statement, WAL-MART said China We will continue to adhere to a positive and steady development strategy. We will continue to promote the development of 110 new sites in the next 2014-2016 years, including new shopping malls and distribution centers, to create a more efficient supply chain, and further strengthen the compliance of shopping malls.

　　 Wal-Mart The responsible person also admitted to reporters that the US headquarters is still very optimistic about the Chinese market, and this adjustment is very strong, and it also lays the groundwork for the future development of the Chinese market.

But the fact that WAL-MART has been caught in a continuous wave of closing shop is an indisputable fact.

According to the data, WAL-MART closed 14 stores in China in 2013, including two trust stores, the most in the mainstream supermarkets. This year, the supermarket giant will close more than 20 poor stores, and open nearly 30 high-quality retail stores, and invest another 580 million yuan in upgrading and Upgrading about 55 stores.