Wal-Mart Licensed for Global Purchasing Center in Shenzhen

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Last updated at: (Beijing Time) Wednesday, December 05, 2001

Wal-Mart Licensed for Global Purchasing Center in Shenzhen

The America-based chain store retailer Wal-Mart was licensed Monday to undertake the construction of a global purchasing center in Shenzhen, which has been eyed by Wal-Mart as a place of strategic value for its global expansion.

Sources from the Wal-Mart China Limited Company said, in less than two years, procurement for its annual sales of 190 billion U.S. dollars would be taken over by the center and its purchasing network.

Some 20 Procurement Areas to Be Established

Based on the center in the Futian bonded area of south China's Guangdong Province, some 20 other procurement areas will be established to cover the world market.

With an annual increase of 20 percent in its purchasing volume, Wal-Mart bought commodities from China worth more than 10 billion U.S. dollars last year, with 95 percent being made in Shenzhen.

Wal-Mart Eyed Shenzhen for Global Expansion

The hub of communications in south China, Shenzhen has been eyed by Wal-Mart as a place of strategic value for its global expansion.

Since 1996, Wal-Mart has set up six chain stores in the city, with China growing into its largest supplier.

About Wal-Mart

In less than 10 years since the company's first store opened outside the United States, Wal-Mart International has enjoyed rapid growth and consumer acceptance. Today, customers at more than 1,000 stores in nine international locations prove Wal-Mart's Every Day Low Price promise is a message clearly understood in any language.

Wal-Mart became an international company in 1991 when a SAM'S Club opened near Mexico City. Just two years later, Wal-Mart International was created to oversee the growing opportunities for the company worldwide. The division currently operates stores and clubs employing more than 282,000 Associates in Argentina, Brazil, Canada, China, Germany, Korea, Mexico, Puerto Rico and the United Kingdom.

Wal-Mart China Expansion to Accelerate

Wal-Mart China, which opened its first unit in the summer 1996, now has two Supercenters and one SAM'S Club in the country. Since 1996, Wal-Mart has set up six chain stores in the city, with China growing into its largest supplier.

"Over the last two years, Wal-Mart has learned a tremendous amount about serving our Chinese customers, and our excitement about expanding in the market and in Asia has never been stronger," said Bob L. Martin, president and chief executive officer of Wal-Mart International.

The China announcement comes as about 18,000 Wal-Mart associates, shareholders and guests convene in Northwest Arkansas for the annual Wal-Mart Shareholders' Meeting. The event begins 7 a.m. Friday, June 5, at the Bud Walton Arena on the University of Arkansas campus in Fayetteville.

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