Wal-Mart expressed intentions to implement operational restructurings for its Sam's Club business in China with a series of measures, including selling stores to Chinese operators.
Greg Foran, Wal-Mart's senior vice president for international business, told local media that the company has 550 Sam's Club stores in America, where the population is only 300 million. However, in China, which has 1.34 billion people, Wal-Mart only opened 10 Sam's Club outlets. Meanwhile, they do not have many bricks-and-mortar competitors in this specific marketplace.
For 2014, Wal-Mart plans to open two additional Sam's Clubs in China and will accelerate their expansion in the future. Foran hopes that over the next six to seven years, the company can add 10 new Sam's Clubs to the Chinese market each year.
Foran was appointed as Wal-Mart's China president and chief executive officer in February 2012. He is facing large pressures since the competition in the Chinese market is growing severe and more consumers have turned to the Internet for commodity shopping.