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Walmart to expand in China through acquisition route

RBR Staff Writer Published 07 October 2013

US retail major Walmart is open to potential acquisitions in China in a bid to boost its operations in Asia.

Under the plan, the retailer has revamped its practices and legal compliance division, and is considering acquisitions in those Chinese cities where it has none or less operations, reports The Wall Street Journal.

Walmart, the world's largest retailer by sales, is looking to enhance its global operating margins by investing more in Chinese and Brazilian markets, where it has been operating successfully.

Asis is a key market for the retailer now as a consistent drop in margins has been reported from Canada, Mexico, Japan and the UK markets.

International operating income fell 1.3% in the second quarter ended in late July. Comparable sales dropped in Canada, Mexico, Japan and Britain, while it rose marginally in Brazil and China.

Speaking at the Asia Pacific Economic Cooperation conference in Bali, Wal-Mart's Asia division chief executive Scott Price described retailers as "hopeful" of success in the Chinese market.

Walmart is also considering deals with foreign companies in China, and is looking to enhance the efficiency of its supply chain, sourcing high quality and competitive merchandise from more than 70 countries globally.