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Economy

Walmart And Other Foreign Retail Closing Shop In China

CAIXIN MEDIA(China), REUTERS

Worldcrunch

BEIJING - It wasn’t so long ago that its booming spending power and growth potential were calling all the world's retail giants to set up shop in China. But according to Caixin media, a relative economic slowdown and the rapid rise of its e-commerce is prompting many of those foreign retail giants to slowly shutter their Chinese outlets.

Media Markt, a German consumer electronics chain, announced at the end of February it was shutting all its stores in China. Walmart also decided earlier this month to close three of its mega outlets.

As Caixin media reports, Best Buy, an American consumer electronics and appliances chain, was the first to pull back from China, closing all its nine stores in 2011. This year just before the Chinese New Year in early February the world's third-largest home improvement retailerB & Q Chinaannounced it was shutting its store in Wuhan after having shut 24 other operations in China since 2009. Meanwhile two other foreign retail outlets, Ito Yokado, a Japanese chainstore, and Our Lotus, a branch of a Thai group, simultaneously announced the closure of their stores in Beijing earlier this year.

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Walmart in China (lehaneb)

But it is not just foreign retail companies suffering from the setback. Lots of Chinese retailers have encountered the same operational hardship. In its annual report released this week, Li Ning, a local Chinese sports brand, revealed it has closed 1,800 shops across the country in the past year.

The tide of closed-down outlets reflects the increasingly tough conditions for traditional retailers, Caixin media notes. The double whammy of the slowdown of the Chinese economy and the fierce rise of e-commerce operators are the main causes. For instance China's largest e-commerce firm, Alibaba, is said to be selling merchandise this year worth more than that sold by Amazon and eBay combined, according to a recent Reuters report.

Inventory of retailers closing stores (Caixin media)

 

Names of firm

Background

Description

Walmart

American supermarkets

4 stores shut in 2012, plus another 3 in this year including an old one which had been open for 10 years.

Media Markt

German comsumer electronics

In March 2013 it’s to leaveChinatotally.

Home Depot

American retailer of home equipments

September 2012, after successive years of losses, it announced it’s packing up totally in the Chinese market.

Li Ning

Chinese sport apparels

It closed 1821 shops in 2012.

Peak Sport

Chinese sport apparels

It closed 1323 shops in 2012.

Best Buy

American comsumer electronics

February 2011, it decided to shut 9 of its stores and quit the Chinese market.

B&Q

British multinational DIY

February 2013, announcement to shut down a store inWuhan, after having shut 24 other operations inChinasince 2009.

Carrefour

French supermarkets

2012, closure of 6 stores inChina.

Avon

American beauty and household care company

2013, it is to reduce its provincial branches inChina.

Our Lotus

Thai-owned retail store

January 2013, closure of itsBeijingstore.

Ito Yokado

Japanese general merchandise store

January 2013, closure of itsBeijingstore.

TESCO

British supermarkets

Since August 2012, closure of several stores in various provinces

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Society

Italy's Right-Wing Government Turns Up The Heat On 'Gastronationalism'

Rome has been strongly opposed to synthetic foods, insect-based flours and health warnings on alcohol, and aggressive lobbying by Giorgia Meloni's right-wing government against nutritional labeling has prompted accusations in Brussels of "gastronationalism."

Dough is run through a press to make pasta

Creation of home made pasta

Karl De Meyer et Olivier Tosseri

ROME — On March 23, the Italian Minister of Agriculture and Food Sovereignty, Francesco Lollobrigida, announced that Rome would ask UNESCO to recognize Italian cuisine as a piece of intangible cultural heritage.

On March 28, Lollobrigida, who is also Italian Prime Minister Giorgia Meloni's brother-in-law, promised that Italy would ban the production, import and marketing of food made in labs, especially artificial meat — despite the fact that there is still no official request to market it in Europe.

Days later, Italian Eurodeputy Alessandra Mussolini, granddaughter of fascist leader Benito Mussolini and member of the Forza Italia party, which is part of the governing coalition in Rome, caused a sensation in the European Parliament. On the sidelines of the plenary session, Sophia Loren's niece organized a wine tasting, under the slogan "In Vino Veritas," to show her strong opposition (and that of her government) to an Irish proposal to put health warnings on alcohol bottles. At the end of the press conference, around 11am, she showed her determination by drinking from the neck of a bottle of wine, to great applause.

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