Wal-Mart stores in the Chinese city of Chongqing reopened to surging crowds on Tuesday (October 25), two weeks after being shut down by local authorities for violating food and product standards, Reuters reports.
Wal-Mart reopened its 13 stores after being forced to close them when Chongqing authorities discovered branches selling regular pork labelled and priced as organic pork.
Authorities also arrested two Wal-Mart employees as a result of the investigation. A Chongqing government spokesman said last week that another 25 remain under investigation.
'I expect this will have only a short-term impact (on Wal-Mart's reputation). Customers will continue to shop at Wal-Mart due to the prime location of its stores,' said Jason Yuen, a retail analyst at UOB Kay Hian Research in Hong Kong.
The pork mislabeling was the latest in a string of 21 violations (including selling dairy products and juice after expiration dates) dating back to 2006 and authorities, who said they were dissatisfied with Wal-Mart's previous responses, ordered a two-week closure of all the chain's stores in the city.
Wal-Mart China said it used the two-week shut-down to strengthen its local monitoring processes and training, and has created a 'fast food inspection lab' in its stores.
'Wal-Mart is committed to Chinese customers, and is dedicated to compliance with all the standards and requirements,' said company spokesman Anthony Rose in a statement.
The Administration for Industry and Commerce said on Monday (October 24) it would start a three-month food safety inspection programme, sending inspectors to Wal-Mart and other hypermarket chains to promote a safe food environment.
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