Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that Walmart announced that its Supplier Enablement under Walmart Global Sourcing is moving from China to India. According to Wal-Mart’s commitment, the company will purchase more than US$10 billion of Indian-made products from India. This relocation work has already started. Walmart did clarify later that this is not a move of the Global Supplier Business Unit, which is independent from Walmart China. Walmart China did not respond directly to inquiries about the reason for the relocation. At least one Chinese Walmart supplier confirmed that it did receive the notification. Walmart entered the Chinese retail market in 1996 and opened its first Walmart store in Shenzhen, Guangdong Province. However, in the four year period from 2016 to 2020, Walmart closed 80 stores in China. Starting from the first quarter of fiscal year 2020, Walmart’s gross profit margin in China has declined for 10 consecutive quarters. There are reports in 2021 that more of its business in China will be sold.
Source: NetEase, October 11, 2021