Wal-Mart recently fired thirty of its corporate executives in China, and hundreds of others, in an effort to save costs. The US retailer has a hard time to keep up with the gruesome competition, tells retail analyst Ben Cavender in the China Daily.
The China Daily:
Among the executives being sidelined are vice-presidents from its hypermarket business Wal-Mart China and its wholesale arm, Sam’s Club China, according to two Wal-Mart China employees, who asked not to be named. Others have been removed from divisions including merchandising and innovation, they said.
Many of the dismissed have at least 15 years’ working experience, according to local media reports.
“This is a sign that Wal-Mart is facing more competition as well as cost pressures,” said Ben Cavender, principal of the Shanghai-based China Market Research Group.
“This looks like an attempt to streamline their operations, to cut costs and become more efficient.”
The current overall economic climate as well as the fallout from bad publicity from its own and other food safety scandals are also hurting the brand, said Cavender, while at the same time competitors are becoming more efficient and competing more aggressively.
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