The world’s largest retailer, Wal-Mart, is considering potential markets in Vietnam, Indonesia, and Thailand, while firming its grip on the Japan and China despite lacklustre results in those markets.
Wal-Mart is also expecting a 10 per cent growth in its international sales to US$100bn this financial year, according to India’s Economic Times.
“I foresee international will outpace the US in terms of percentage of growth. We should be approaching the US$100bn mark this year for international,” said Asia CEO Vicente Trius.
Wal-Mart international profits have been going up despite a global economic slowdown. The company posted its second-quarter profit last month, showing growth of 17 per cent in international sales.
Wal-Mart opened its Asian regional headquarters in Hong Kong last month to oversee its operations in India, China and Japan.
The company runs 394 Seiyu stores in Japan and over 200 stores in China. Wal-Mart also holds a minority share in China’s Trust-Mart chain and is running a joint venture in India with Bharti Enterprises.
Mr Trius said Wal-Mart would not pull out of Japan the way it did Germany and South Korea, despite the US$2.2bn invested in Seiyu since 2002 failing to turn the chain into a profit-maker.
“No way. These country comparisons are completely wrong. Germany was a consolidated market, but Japan is still fragmented,” he said.
Wal-Mart shares have risen more than 25 per cent this year.
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