will set up 110 new shopping malls and distribution centers in China in the next three years

Yesterday, Wal-Mart's global president and chief executive, Duke, and Wal-Mart China's president and chief executive Goffo announced that it would set up 110 new shopping malls and distribution centers in China in the next three years, while closing some of its underperforming stores under market assessments and closing 11 stores there.

From the previous case, the retail giant Close is very normal things, it is not a fuss, but the logic behind the shop and how to adjust after closing, will turn the steering wheel to that position, such a question has been the people relish.

For a large volume of plate enterprises, close several shops can only be a small micro-adjustment, the traditional retail closure of the most direct incentive attributed to a single store of low profit, coupled with cost pressures and fierce competition three factors together. Especially in the one or two-line city this role is more obvious.

Indeed, according to Wal-Mart executives, closed stores account for 9% of the total number of stores, with annual sales of less than 2% to 3%, with rents rising and fierce competition in small communities forced to shut down.

From the historical experience, the traditional retail in the closing, but also must open a new store. This is seen as a typical phenomenon of offline retailing development. Especially in recent years, traditional retail crocodiles often avoid the one or two-line cities when they set up new stores, sink and transfer through channels, and cut into three or four-line markets. But this time, a bit different, Wal-Mart said it would close 15 to 30 stores in the next 18 months. Wal-Mart has deliberately turned its attention to the more promising Sam Club and the electric business in its response to a wholesale closing.

In terms of store expansion, Wal-Mart is still dominated by Sam's Club, an integration of its already established core strengths, which means it pays more attention to the profitability of a single store.

And for the online market, it is obvious that this time Wal-Mart to increase the bargaining chip for the electric dealers, the traditional retail giants to seek online access to rob is the most popular proposition in the past two years. Is it feasible or possible for Wal-Mart to try to make strategic adjustments through the development of its electricity business?

Wal-Mart's chip is its huge advantage in the supply chain area, from Wal-Mart China's electric business track, Wal-Mart's Chinese electricity dealers began 3 years ago, in Shenzhen in 2010 on the line of Shenzhen Sam members online store. 2011 through the acquisition of 1th stores to strengthen the electric business, and then the Sam's store online mall from Shenzhen to Beijing, and announced the establishment of Wal-Mart China E-commerce headquarters in Shanghai.

However, from the performance of its e-commerce, despite the implementation, and the performance of the answer is rather poor, look around the world, whether in the United States or in China, Wal-Mart sales accounted for only a small part of Wal-Mart's total sales. In the U.S. market, you can't look at Amazon Xiang, its online sales, and the local market has a cat, Jingdong, suning easy to buy control, and, local large-scale retail also plot online market, in the local brands are not optimistic about the expected, Wal-Mart at this time to choose to deepen the power of the electricity quotient, it is difficult to make new achievements. Three years, no temperature is not hot, had missed the best time window. Now face more impenetrable barriers. Even the exerting force is quite feeble.

From foreign brands exerting power in China's electricity market, including ebay Amazon is mediocre performance, the western culture and local conditions have been criticized, Wal-Mart in China three years of electricity trade routes, and did not running-in what tacit understanding, the same inevitable decline of fatalism.

Of course, Wal-Mart is looking to the electric dealer, does not have to compete with a certain giant high and low, only to show that the previous never too much attention to the electric business of traditional giants finally consciousness is to need to make some changes.