THURSDAY, OCTOBER 10, 2002
Wal-Mart to open stores in Shanghai
AP
SHANGHAI: US retail giant Wal-Mart Stores Inc has set its sights on China's largest and most prosperous city, announcing on Thursday that it had signed an agreement to open stores in Shanghai.
Wal-Mart, the world's largest retailer, said in a statement that the agreement with China's CITIC Group would create a joint venture aimed at Shanghai and other cities in eastern China. It did not say how many stores it planned to open.
America's largest retailer already has 22 stores in China, most in the nation's south. The first opened six years ago in Shenzhen, a city near Hong Kong.
The joint venture, to be named East China Wal-Mart Stores Co, still awaited government approval, the statement said.
In targeting Shanghai, Wal-Mart will be challenging French retailer Carrefour, which has built a strong presence in the city.
As part of its agreement to join the World Trade Organisation, China has promised to open its retail market. Foreigners now face geographical and ownership restrictions, and must get central government approval before opening new stores.
Last year, Wal-Mart bought more than $10 billion worth of goods in China for sale in its 4,500 worldwide stores.
Last week, Wal-Mart announced plans to add up to 165 new stores in 2003, continuing its aggressive expansion. Internationally, Wal-Mart said that it would open as many as 130 units in markets where it already had a presence, which includes China.
As of last week, the company had 3,335 stores in the US and 1,212 in other countries. Wal-Mart has 1.3 million employees in the US and abroad.
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