Wal-Mart Admits China Business Is Ongoing Struggle, Sees Long-Term Growth

Wal-Mart said it is still working to optimize its business model in China where the U.S. retailer has about 8 percent share of the retail market. China operations accounted for $10.6 billion of Wal-Mart's $469 billion revenue in 2012, an increase of 15 percent from the previous year, according to IBIS World Inc. Wal-Mart International president Doug McMillon said his company is seeking to gain better locations and layouts compatible with a supercenter format. Although Wal-Mart closed four stores in 2012 and plans to close three more in 2013, it has no plans of leaving the market like what its rivals Best Buy and Home Depot did. Instead, the retailer said it is investing $80 million to remodel 50 stores and build 30 new stores more. Also, Wal-Mart said it will invest $16.3 million to improve food safety measures in China.