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News That WAL-MART Will Open Small And Medium-Sized Supermarkets To Enter The Three Or Four Tier Market.

2010/6/3 10:10:00 25

WAL-MART Three Or Four

 


Following the successful launch of the "convenience store" convenience store in Shenzhen, WAL-MART, the world's largest retail giant, has recently reported that it is planning to launch second "original" formats in China. If there is no accident, a comprehensive supermarket similar to the "Hyperm arket" of small and medium-sized supermarkets will appear in the three or four tier market in China.


The news has been interpreted by many people in the industry as a new attempt to implement WAL-MART's localization strategy in China. However, a reporter recently learned that the new format under planning, whether it is the location of the name or the scope of future market expansion, is highly coincident with the supermarket that has been annexed by WAL-MART. Yesterday, Nandu reporters once again learned that WAL-MART's wholly-owned acquisition of trust Mart has been postponed to November 26th this year. The "Hyperm arket" format now being planned is likely to be prepared for the acquisition of trust Mart after WAL-MART's internal diversification. However, by yesterday's deadline, WAL-MART China company officials did not reply to reporters.


   The "new format" being planned


WAL-MART has four formats in the US: supermarket shopping center, Sam member store, community store and discount chain store. The first three formats have been introduced into China. But in the Chinese market at present, WAL-MART mainly focuses on the development of supermarket shopping centers. As of the end of January this year, 167 branches have been opened. In addition, WAL-MART has only 2 community supermarkets and 4 Sam member stores in China.


In June 2009, WAL-MART tested 3 "convenience" convenience stores in Shenzhen, and put forward that if the "preferential mode" was successful, it would expand 1000 stores to the whole country in 5 years as an important strategy to seize the market. However, Nandu reporters in Shenzhen saw that the Shekou shop was closed at the end of last year because of the failure to find a suitable profit model. The remaining two are still in the pilot operation stage.


"H yperm arket is still in the process of planning, and when the specific shop can be opened, it is still being discussed, but the drawings of the shopping mall have been painted." According to the industry's statement, this format is decided by WAL-MART's China business development department and market department. The new format is located in WAL-MART, a shopping mall which is smaller than the shopping mall. Some of them are similar to small and medium-sized supermarkets, which are more suitable for opening in small towns and towns. The consumption power of these places is not enough to support a WAL-MART shopping plaza.


   The coincidence of new formats and good many


But up to now, WAL-MART has not given a positive recognition to the new format. "On the disclosure of information, WAL-MART's new business status is in fact a big coincidence with trust Mart." A person who has long been concerned about the development of WAL-MART has told reporters. According to WAL-MART's latest financial report, the world's largest retail enterprise has reached 276 stores in China by the end of January this year, of which WAL-MART first bought 104 stores of good Mart stores in China's report consolidation statistics.


In addition, it is worth noting that in the WAL-MART overseas market store statistics and operation mode table, the 104 shops of good quality are categorized as "H yperm arkets" format. According to the insiders of the trust mart, the company now has four major divisions in Southern China, Huaxi, Huadong and North China. Besides the first tier cities, the other stores have already infiltrated into the three or four tier cities.


In February 2007, WAL-MART officially announced that it would buy $264 million to buy the BCL35% of the mart Mart holding company. After that, it paid $376 million for another 30% of the voting rights. Yesterday, Nandu reporters again learned from reliable sources that under the latest revised purchase agreement, WAL-MART must purchase the remaining shares of BCL on or before November 26, 2010, on the basis of certain conditions. In accordance with the terms of the original share purchase agreement and in some cases, if the deduction is made, the final purchase price of the remaining shares will be about 320 million dollars. This means that by the end of this year, WAL-MART will have completed a wholly-owned acquisition of trust Mart. Under this background, we can not let people have more connections between the new format of "H yperm arkets" and the acquisition of trust Mart.


   New trend of logistics distribution


"The development of the three or four tier cities will be the right path of development." Huang Huajun, President of the first commercial network, said that the total sales volume has surpassed that of Carrefour, which is the first in China's foreign retail supermarkets. Shops in the first tier cities are increasingly scarce, while WAL-MART's supermarket shopping centers mostly use self built property management mode, and their expansion space and development speed are limited. There is no mature market in China's rural areas, and the market gap is huge.


In the past 14 years in China, WAL-MART has established a cooperative relationship with 2 suppliers in China. Its products sell to more than 95% of its local products. However, due to the limited network of shops, WAL-MART's strong logistics and distribution system has never been able to play a role in China. It is reported that WAL-MART headquarters in the United States announced that it is communicating with all suppliers, and intends to take over the transportation process of all goods supply, so as to maximize the cost of logistics and reduce the price of goods. "Although this mode of operation has not yet extended to China, we must not forget that WAL-MART's logistics and distribution capabilities are invisible weapons that other retailers can not match." Huang Huajun said that if the trust mart and WAL-MART form a dislocation development path in different markets, with the strong supplier resources of WAL-MART and flexibility and flexibility, their network can soon blossom everywhere in China. Once the number of stores can support the operation of WAL-MART logistics distribution system, it will achieve a qualitative leap in the efficiency of supply chain.

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