Wal-Mart has more than 3,700 U.S. stores in the U.S. But the world's largest retailer has ambitious plans of having just as big a presence in the Chinese market. Wal-Mart took a step towards that direction on Tuesday, Oct. 17 with the big-box retailer reportedly purchasing the biggest food and department store network in China — Taiwanese-owned Trust-Mart — for $1 billion, according to Reuters. The deal needs approval from Chinese regulators. But if the deal gets the OK, Wal-Mart will surpass Carrefour for the most supercenters in the country with 100. The Wall Street Journal reported on Oct. 16 that Wal-Mart beat Carrefour for Trust-Mart. Currently, Wal-Mart has 60 supercenters in China.
Wal-Mart is pinning its future growth to global expansion as the U.S. market has shown slower growth compared with sales outside the U.S. Take, for example, in the month of September, Wal-Mart posted a respectable sales growth number of 7.9% in the U.S., while its international business posted a stronger gain of 32%. With China's growing middle class, the country's market is ripe for Wal-Mart's affordable products that range from groceries to clothing and household appliances. McKinsey estimates that an emerging middle class, which earns between 25,000 to 100,000 yuan a year, will jump to 200 million in 2015 from 42 million in 2005. That's a big increase that Wal-Mart is salivating over. A growing middle class means more money in Wal-Mart's coffers. And that's what Wal-Mart is hoping for ... — Gerald Magpily
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