17、art integrated its 30 purchasing offices in China into eight regional offices. In October 2013 ，Wal-Mart also increased the centralization of purchasing with some small suppliers having been eliminated. The frequent occurrence of food safety issues is an important reason for Wal-Mart to accelerate t 。

18、he “centralization of purchasing rights”. In September 2011 ，Wal-Marts three supermarkets in Chongqing were reported to “sell the ordinary chilled fresh pork in the name of green food” ，for which Wal-Mart had to make an official apology. In December 2013 ，Wal-Marts outlet in Jinan was reported to “s 。

19、ell cheap fox meat under the color of cooked beef and donkey meat”. Once again Wal-Mart apologized for it. In January 2014 ，Wal-Mart was reported again to sell “non-qualified products”. Obviously ，the centralization of purchasing rights will apply strict policies and procedures to the system to ensu 。

20、re the product quality. However ，the centralized management will impair the competitiveness of Wal-Mart in some cities. “For Wal-Mart ，the difficult part is how to get used to the Chinese market and handle well between the standard and flexibility ， ” said Ren Guoqiang ，partner of Roland Berger Strate 。

21、gy Consultants. “As for the organizational structure ，which part can see the eased control and how to decentralize the rights without causing any disturbance？ All these things need careful consideration.” Apart from the operating pattern ，Wal-Mart ，as well as other foreign chain retailers ，has to fi 。

22、ght against other problems in China ，such as the lack of qualified staff ，unbalanced infrastructure and scarce in reliable cold chain delivery network. The Structural Changes In the year of 2013 ，the retail companies closing stores was one of the most heard reports in the media. According to the Sta 。

23、tistical Report about Major Chain Retailers Closing Stores in 2013 ，chain retailers （furniture and home appliance retailers excluded）closed 31 outlets in total in 2013. WalMart alone closed 14 outlets in China last year ，taking the championship among all major foreign chain retailers. Tesco closed t 。

24、hree outlets in China due to operating problems while Lotus closed two. The Chinese local chain retailers did not see better days as they closed 35 outlets last year. Most of the closures of outlets happened because of the expired leasing contracts ，business changes ，weak profitability ，strategic ne 。

25、ed ，transformation and poor management. According to Ray Bracy ，senior vice president of Wal-Mart China ，Wal-Mart closed some outlets last year because of its fascination with expansion in the past. Under certain conditions ，their attention to the expansion grew bigger than the efficiency.“We will n 。

26、o longer make that mistake ， ” he said. Greg Foran ，president and CEO of WalMart China said that WalMart would run strict tests over the market conditions when setting up the 110 new outlets. Some underperforming stores need to be closed ，which meets the requirements of the corporate management. It ca 。

27、n also help Wal-Mart achieve better development in the Chinese market. In Ren Guoqiangs opinion ，WalMart selective closure of stores is generally a right choice. “From the economic benefits ，closing some underperforming outlets could move the scarce resources to outlets with better performances. Thi 。

28、s closure and transferal are very normal and nothing speculative can be found here ， ” he said. “In addition ，the market in the major cities of China has already been saturated and the rents are increasing faster than expected. The labor cost is rocketing up too. All those factors are eating away the。

29、profit space for retailers. So ，after the wrongness ，it is very important for Wal-Mart to find the way of development suitable for itself.” As said before ，Wal-Mart chose to go to lesser cities. In October 2013 ，Wal-Mart announced a series of plans for its development in China. Apart from the plan o 。

30、f establishing 110 new sites ，Wal-Mart also reconstructed and upgraded 45 existing outlets in 2013. In 2014 and 2015 ，Wal-Mart plans to upgrade 55 and 65 outlets respectively. In 2013 ，Wal-Mart opened 30 new outlets to increase its presence in the emerging cities of China. In the fourth quarter of l 。

31、ast year ，Wal-Mart established 14 new outlets in Hunan ，Sichuan ，Guangdong ，Hebei ，Jiangxi ，Henan ，Hubei ，Yunnan and Shanxi ，75% of which were established in the third- and fourth-tier cities of China. In addition ，several logistics centers of Wal-Mart have been built and put into use. In August 201 。

32、3 ，its logistics center in Wuhan ，Hubei was officially put into use. Three months later ，a similar center was set up in Shenyang ，Liaoning. In addition to that ，Wal-Mart set up seven fresh products delivery centers in Beijing ，Shanghai and Guangzhou ?Chinas major cities that boast advanced transport 。

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