Walmart stores are decorated with Chinese lanterns and discount posters to attract customers. (Photo : Getty Images)
Encouraged by increasing sales increase in China, retail giant Walmart will further expand in the country this year by opening up to 40 new branches. Among the new branches would be up to five Sam's Club outlets.
Walmart China is seeking new retail models to cater to consumers' changing shopping habits. It will also allocate over 300 million yuan ($43.4 million) to upgrade 50 outlets and improve stocking and logistics.
Last year, Walmart opened 24 new outlets in China last year, including 21 hypermarkets and 3 Sam's Club stores, to increase its total number of stores to 400 across the country.
The company boosted sales by 5.4 percent year on year from November to January. It was Walmart's best financial performance in almost five years, according to Walmart China president and CEO Dirk Van den Berghe.
He added that the company will swiftly improve overall customer experience in China and continue their alliance with JD to fortify an "omnichannel approach."
Walmart signed a strategic partnership agreement with JD.com last year to offer various services, including online shopping, door-to-door delivery, and mobile payment.
Walmart China has 402 Supercenters, 15 Sam's Club, two Neighborhood Markets, one Smart Choice, 19 Hypermarkets.
In Feb. 2012, Walmart raised its stake to 51 percent in Chinese online supermarket Yihaodian before taking full ownership in July 2015.
Just last year, it was reported that Walmart is experiencing trouble in China due to lack of understanding of the country's political, economic, and cultural environments.
It was explained that Chinese consumers differ widely from city to city in their needs, unlike those in the U.S., and that Walmart struggled to find the right mixture of product for the 117 cities and 25 provinces it serves.
Labor strikes, boycotts and lawsuits demanding back pay have also hit Walmart in China.
The company is family-owned, is the world's largest by revenue and the largest private employer with 2.2 million employees.
