IndiaRetailBiz

After closing down its operations in South Korea and Germany, and downsizing operations in Japan, Wal-Mart — the world’s largest retailer– is finding the going to be tough in mainland China as well. Not only, the giant retailer has failed to make profits in its 12 years long existence in the world’s most populated and fastest growing country, its sales ranking vis-a-vis its counterparts is also steadily going down.

China’s Department of Trade, which provides information on relative strengths of retailers in the country, has ranked Wal-Mart at No 30 in 2005, compared to 20th in 2004, and 17th in 2003.

In a significant move, Wal-Mart has recently announced to locate its Asia headquarters in Hongkong. This was in contrast to earlier belief that its China headquarter in Shenzhen would also be chosen to act as its Asia headquarters. Sanghai and Singapore were incidentally also in running for the honour. Shenzhen will continue to act as Wal-Mart’s Global Procurement Center, though.

Wal-Mart is hoping a lot from its proposed foray into India with Bharti Retail. While, it has set up a joint venture with Bharti for wholesale ‘cash and carry’ retail, it is offering technical and sourcing services to Bharti for front-end retail. Bharti has already unveiled its front-end supermarket chain called Easy Day in Punjab, the joint venture is expected to rollout its first wholesale store in early 2009.