Doug McMillon Wal-Mart

Doug McMillon

Global retail giant Wal-Mart has targeted low-income and rural customers in China with the opening of a no-frills compact hypermarket in the eastern province of Jiangxi.

The compact hypermarket, which opened in October in Zhang Shu city, is around 3,500m2 and features the Trustmart banner.

According to a report in the Financial Times the opening was expected to be the first in series of stores based on a model developed for Latin America.

The stores will be cheaper to build and likely feature cement floors, brick walls, and possibly no air-conditioning, said Doug McMillon the chief executive of Wal-Mart’s international business.

“It’s going to help us reach more people…not only in the urban markets but also reaching people in rural areas,” he said about the new format.

Walmart currently runs around 300 of its larger format hypermarket stores in China, reported the newspaper, which target the country’s emerging middle-class.

Mr McMillon told investors in October compact hypermarkets would become more important to the running of Wal-Mart’s international business in the future.

He added that the format could also be introduced to sub-Saharan Africa if Wal-Mart wins its bid for a controlling stake in South African retailer Massmart.