The first Wal-Mart opened in Mainland China will close soon
Shenzhen Honghu Wal-Mart will cease operations at the end of November? Yesterday, the Red Star Capital Bureau learned from the staff of the store that it has not received an email notification yet. The specific closing time of the store is currently uncertain. "The counter has not been withdrawn, but it is certain that the store will be closed during the year. It’s been out of stock for a month."
Shenzhen Honghu Wal-Mart is the first store opened by Wal-Mart (WMT.US) in Mainland China. It opened in 1996 and it has been 25 years since.
According to incomplete statistics, from 2016 to 2020, Walmart China closed about 80 stores. As of September 2021, the number of stores of Wal-Mart hypermarkets in the Chinese market has fallen from 403 at the beginning of the year to 378. Fujian Nan'an Wal-Mart announced that it will cease operations on November 26. In addition, according to Southern Metropolis Daily, Shenzhen Honghu Wal-Mart will cease operations at the end of November. Wal-Mart China has confirmed that it will close 27 hypermarkets in 2021. The reasons for closing stores are basically " The lease expires".
Sam's Club is almost the only business that Wal-Mart maintains expansion in the Chinese market. Since it opened its first store in Mainland China in 1996, it has continued to expand in first- and second-tier cities. From 2016 to 2020, Sam's Club has grown at an average rate of 3 new stores per year.
Sam's Club announced on November 22 that the number of paying members in China has exceeded 4 million, and it operates 36 stores in 23 cities. Based on the membership fee of 260 yuan, Sam’s annual income is 1.04 billion yuan alone. Sam said to the outside that he will maintain the rate of opening 4-5 stores every year, and the number of stores will increase to 100 in the next 8 years.