US multinational retailer Walmart intends to close 25 stores in China next year that have failed to perform adequately.
According to the chief executive of Walmart Asia Scott Price, these 25 stores comprise only 2.5 per cent of the retailer’s total sales in China.
Regardless of its closures, the company has reaffirmed its commitment to the Chinese market and expressed desire to better its efficiency there.
This is set to be conducted by upgrading operations, procurement and management, improving store formats and focusing price advantages and core competitiveness.
In October 2012, Walmart announced that it intended to open 100 new stores in China in the following three years.
However, during 2013, the retailer has only opened 12 new outlets, while also closing four.
Walmart currently operates a total of 398 stores in China, where it has held a presence since 1996.
