CHICAGO -- Wal-Mart Stores, Bentonville, Ark., is pushing to build its presence in international markets with aggressive expansion plans under way through the end of this year.
"Wal-Mart is planning 208 more international units, which encompass about 29 million square feet of retail space, by the end of this year," said Robert L. Martin, president and chief executive officer of the international division of Wal-Mart.
Wal-Mart has taken its discount stores international by setting up shop in Puerto Rico, Mexico, Canada, Argentina, Brazil and, most recently, Indonesia and China.
After overcoming the hurdles of language and currency conversions, and adapting to technology used in developing countries, retailers entering foreign markets also must learn the merchandise.
"There are new and different items that we are offering, and big hits are fresh products, fruit juices, even bulk-size products like candy, snacks and noodles," he said.
For example, Wal-Mart's supercenter in China, a multilevel facility, offers a sushi bar and prepared foods, including rotisserie chicken. Martin reported more than 2,300 rotisserie chickens are sold in one day.
Wal-Mart hopes to explore new categories overseas, including cosmetics and jewelry. "A lot of new categories are growing at 40% to 50%, especially in Asian parts of the world," Martin said. "This illustrates taking a new concept into the market and the quick acceptance you can get, although you are competing with very competitive local retailers," he said.
"Customers are all the same," Martin said. "Customers in foreign markets want the same things that we enjoy, and want a better life for their families."
In-store excitement in Wal-Mart stores is evident through localized signing, which supports nationalism, localism and proof that the discount stores are contributing to the market, not hindering it. Wal-Mart accomplishes this task by encouraging locally sourced merchandise.
"In the initial stages of our entries, we have about 90% of domestically sourced merchandise," Martin said earlier this month at the Retail Information Systems Conference here sponsored by the National Retail Federation, Washington. "We have a strong commitment to boosting the economy, and that means a lot to our customers."
