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Wal-Mart, Stores Inc (NYSE:WMT) Determined To Deliver Safe Food to the Chinese Market

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By on Consumer Staples

According to Wal-Mart, Stores Inc’s (NYSE:WMT) chief executive officer of the Asian region, Scott Price, the company is very much determined to focus on the safety of its food as it wants to boost its profitability in the region of China. The company has as many as 400 stores in China.

The topic of food safety has become quite an issue in China, where recently a number of scandals broke out, from scooping of food oil from the drains to the stories of phoney eggs and milk powers contaminated with melaime.

During the APEC Summit (Asia Pacific Economic Cooperation), Price commented that the main aim of Wal-Mart, Stores Inc (NYSE:WMT) is to continue delivering safe and hygienic products to the Chinese market like it has been delivering for the years.  ”

The company became a news highlight in the earlier part of the year when the donkey meat provided by a supplier was found to contain the flesh of fox as well.

The company was also accused of selling expired products, specifically the duck meat, back in 2011. Not only this, but the retailer was also accused of wrongly labeling the pork meat as organic when it was in fact non-organic. As a result of this accusation, Wal-Mart had to close down its shops in the Chongqing region.

In order to boost the growth of Wal-Mart, Stores Inc (NYSE:WMT) in the stiff economic and competitive market, the CEO of the company was named as the head of the Asia Pacific business retailer.

The company has also announced that it would close down as many as 30 stores in the country of Japan, if those stores continue to do poorly in their sale figures. As for India, the company in 2013 terminated its partnership contract with Bharti Enterprises and started running its wholesale stores instead.

Price, during the summit, mentioned that the company was facing a few bumps in China. The country was among the top 5 markets of Wal-Mart, Stores Inc (NYSE:WMT), and it is the only market who has seen a decline in the same store sales during the second quarter of the year 2014. The figures were down by 1.6 percent when compared with the numbers of the same quarter a year back.

The company recently reported its figures from the global markets. The figures were down by 3 percent on yearly basis.  Total income reported by Wal-Mart was around $11.83 billion.

Wal-Mart, Stores Inc (NYSE:WMT) has revised its forecast for the current year. The company has lowered its estimates in lieu of the tough economic conditions that are prevailing in its markets. According to Wal-Mart, the sale figures would be down by 2 points and would fall somewhere around 2 to 3 percent.

The company is expected to release its earnings report on November, the 13th. Let’s hope to see promising numbers then.

As for the share prices of Wal-Mart, Stores Inc (NYSE:WMT), its shares are currently being traded in the range of $77.61 to 78.77.

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