Dive Brief:
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Wal-Mart Stores Inc. said Tuesday that it will cut 250 jobs in China from its merchandising, marketing, and tax and asset protection divisions. The move is part of an overall plan to streamline its operations there.
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The retailer has also announced that it will open nine new stores and a distribution center in China that will create 6,000 new jobs. The openings are part of a plan to open 110 stores and distribution centers in the country within the next two years.
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The company is also trimming resources in India and Japan. In Japan it will close 30 stores and shift resources to fresh food, while in India it plans to focus more on wholesaling.
Dive Insight:
Wal-Mart’s sales in China have been falling, and a recent government “austerity campaign” to curb consumption hasn’t helped that. But Wal-Mart’s Asia chief Scott Price has said that while the retailer may slow down its growth plans in the country, it’s on track to have 480 Walmart stores in China by the end of 2016 and to boost e-commerce there as well.