By Laurie Burkitt
BEIJING-- Wal-Mart Stores Inc. is cutting nearly 30 directors
and midlevel managers in China, where the retailer is pushing to
contain costs and improve slumping sales.
The cuts include two senior-level directors while the rest come
from midlevel management, said Ray Bracy, spokesman for Wal-Mart's
China division. Mr. Bracy said cuts were part of an overall
restructuring effort in China, but declined to give further
details.
The Bentonville, Ark., retailer has been grappling with slower
sales in China, where it faces tough local competition and
consumers who are pulling back on goods purchases from soda to
toiletries amid overall economic slowdown and an austerity
push.
In its third quarter, Wal-Mart reported an 0.8% drop in China
sales. Executives attributed the fall to deflation and government
austerity measures. Wal-Mart doesn't break out hard sales figures
by country.
Executives have said the Chinese government's push to clean up
excessive consumption at its state-owned enterprises has hit
overall consumer confidence, causing shoppers to pull back on gift
card and moon cake purchases that previously lifted retail
sales.
China's retail sales grew 12% in the first 10 months of the
year, down from 13% in the same period of 2013, according to
China's National Bureau of Statistics.
Wal-Mart, which has about 400 stores in China, announced last
year it would cut stores that were underperforming and restructure
its business for further expansion.
Mr. Bracy said the company is sticking by a plan to have around
480 Wal-Mart stores in China by the end of 2016.
Write to Laurie Burkitt at laurie.burkitt@wsj.com
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