Saturday, July 16, 2005

Wal-Mart to open first Shanghai outlet

By Christopher Bodeen / Associated Press

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SHANGHAI, China -- Wal-Mart, the world's largest retailer, plans to open its first store in China's biggest city, Shanghai, at the end of July, the company said Friday.

Wal-Mart already operates 47 stores employing 20,000 people in China, and has its headquarters in the southern commercial center of Shenzhen.

But it is a relative latecomer to Shanghai, where French rival Carrefour S.A. already operates eight of its giant stores and Germany's Metro AG is also well established.

The 194,000 square foot outlet in the western district of Pudong is one of three Wal-Mart stores planned for Shanghai, home to about 20 million people -- among them many of China's wealthiest consumers, the Shanghai Daily reported.

"We aim to ensure the success of our first store in Shanghai and to see the market response," Hu Minghua, a manager with the company was quoted as saying by the Shanghai Daily newspaper.

A company spokesman, speaking to Dow Jones Newswires on condition of anonymity, confirmed the store's July 28 opening date, but refused to give additional details.

Wal-Mart was one of several foreign investors in China singled out by the Communist Party's sole official union last year for failing to organize union branches in its stores. The company, which has no unionized stores anywhere, said it would allow unions if its workers asked for them. It wasn't clear whether any branches had been set up.

Shanghai Daily said local retailers have been preparing for the giant's arrival by renovating their stores and revamping their product lines.

Others were looking to pick up management tips from Bentonville, Arkansas-based Wal-Mart Stores Inc., which has more than 4,300 outlets in nine countries employing more than 1.3 million people.

Shanghai's retail sector is heating up this year, with 28 new "hypermarkets" -- giant stores that offer merchandise found in both supermarkets and department stores -- due to join the 97 already in operation, the Shanghai Daily said.