Retailing, Franchising, and Consumerism Business Intelligence in China

Wal-Mart To Expand Shenzhen Distribution Center Capacity

Wal-Mart plans to expand its existing distribution center in Shenzhen to 300,000 square meters as it more closely adheres to its model in America and other developed countries.

In the future, the retailer will build more distribution centers, which are expected to put into use in 2014.

A strong supply chain is the core competitiveness for retail enterprises. By enhancing investments in distribution centers and introducing advanced technical applications, Wal-Mart aims to improve its supply chain efficiency to support its store operation in southern China.

According to Wal-Mart, its concentrated supply chain will be able to ensure the product supply of its supermarkets and Sam's Clubs in China after 12 months.

In August 2013, Wal-Mart's Wuhan distribution center was put into operation and its new distribution center in Shenyang will start operating this month. In addition, the company is adding new fresh food distribution centers in southwestern, northeastern, and northwestern regions in China which will be gradually available in the coming year.

At present, Wal-Mart has six fresh food distribution centers in China. The company's cold chain distribution system is expected to cover all Wal-Mart stores across China by the end of 2014.

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