Wal-Mart Doubles In China

Posted by Daniel Workman Aug 2, 2007

Wal-Mart has learned some painful lessons in international trade. Last year, the retailer exited Germany after traditional German shoppers rejected the company's big-box American ways. Wal-Mart executives made their decision based on low profitability that didn't appear likely to improve anytime soon.

Shopper culture doesn't seem to an issue in China, where Wal-Mart is intently focused on tapping the accelerating personal wealth among the country's 1.3 billion people.

Currently, Wal-Mart has 84 stores in 46 Chinese cities. Wal-Mart now wants to expand its reach into smaller cities where few, if any, superstores compete. In North America, smaller cities become dependent on Wal-Mart's broad range of products and one-stop shopping business model.

As usual, Wal-Mart has set lofty goals. The company plans to become a market leader, dominating 20% of China's retail market.