Walmart closes store in China

Outlet was not yielding in terms of revenue for a long time

Walmart Stores, the world's largest retailer, has shut an outlet in China after it closed down 10 stores across the country last year, state media reported today.

 

The US-based retailer chose to close the store in Chongqing, southwest China's largest municipality, as the outlet had not been yielding in terms of revenue for a long time, Xinhua news agency quoted a staff member as saying.

 

Selection of a poor site is also being blamed for the store's declining trade. The avenue is a tourist attraction offering views of the Yangtze River, the report said.

 

Walmart China had closed 10 stores nationwide in November and December last year.

 

This is the first closure by Walmart in Chongqing, where it entered 10 years ago.

 

The retail major planned to invest in its other 12 city outlets, said the staff member.

 

The emergence of online shopping poses an increasing challenge for firms like Walmart.

 

Although it still accounted for less than 10 % of China's total sales of consumer goods, the country's online retail market posted a transaction volume of 1.89 billion yuan ($ 307 billion) in 2013, growing by 42.8 % year-on-year.

 

Walmart's stores also face stiff competition from local retailers.

 

Chinese grocery retailer Yonghui Superstores has been in talks to rent the site that Walmart has vacated in Chongqing.