Wal-Mart tight-lipped on closure reports (2)

Last month, Wal-Mart CEO Mike Duke said in Beijing in an interview with China Daily that although the company is slowing its expansion pace, it plans to open more than 100 additional stores and more distribution centers in China in the next three years.

The less-ambitious plan is a preemptive adjustment based on the changing macroeconomic climate, Wal-Mart China said.

In October, the company downsized the number of its merchandizing offices to eight to upgrade its supply chain and operational efficiency.

China's retail sector witnessed declining growth this year because of weak consumption, saturated regional markets — particularly in first- and second-tier cities — and the rising costs of labor and rent, Guo Geping, director of the China Chain Store & Franchise Association, said earlier this month.

Wal-Mart China's newly appointed CEO, Greg Foran, said earlier that Wal-Mart is embarking on a transformation process of its China operations to create a simpler business that is more effective and to grow with a focus on business fundamentals.

Wal-Mart declined to comment on local media reports that the company is expected to gradually close 100 unprofitable stores between 2013 and 2015.

With 370 stores as of March, Wal-Mart's sales in 2011 ranked fourth in China among the top 100 foreign-chain retailers, according to the China Chain Store & Franchise Association.

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