Chapter 1822: Wal-Mart's Decision

Taihua Supermarket Group expanded wildly and successfully entered the 100 billion turnover club.

This is a very big gap. World retail giants such as Tesco, Metro, and Holland Supermarket all have an annual turnover of around US$50 billion. Carrefour’s annual turnover was around US$70 billion last year, while Wal-Mart’s annual turnover was around US$70 billion. The amount exceeded 370 billion US dollars.

This is why Wal-Mart is known as the world's largest retail giant, and the gap with other retail groups is not a little bit.

Of course, there are more than 10 supermarket chains in the United States with more than 30 billion US dollars, and the turnover of many supermarket groups in a certain state even exceeds Wal-Mart, but when combined, they cannot compare with Wal-Mart. The other nine together can almost be the same as Wal-Mart.

What's more, Wal-Mart is not just in the United States. Canada and even more than a dozen countries around the world have Wal-Mart branches. The Walton family is also a big family in charge of the retail industry.

There are many supermarket groups with sales of more than 30 billion yuan in North America. Haven't they thought of joining forces?

I have thought about it, but two companies can join forces. If three or five companies join together, everyone's equity will be severely diluted. Who will be the chairman and who will be the CEO?

Only power can guarantee their interests, and none of them want to lose power, so those supermarket groups have not been able to merge, and they have not even been able to unite in good faith to fight against Wal-Mart.

In the minds of many retail tycoons, Wal-Mart is the pinnacle that can never be challenged. Unless Wal-Mart kills itself, Wal-Mart will always become the number one in the world, and no retail company can surpass it.

This is also the reason why Wal-Mart occupies the top three of the world's top 500 companies all year round, and even ranks first many times. No company would want to cooperate with a retail giant like Wal-Mart.

Even if it is Coca-Cola, the world's number one beverage giant, if Wal-Mart no longer sells Coca-Cola's products, then Coca-Cola's turnover will inevitably drop significantly.

Wal-Mart also decides the retail price of many products. As long as there is Wal-Mart in the area, no retail enterprise can have a lower retail price than Wal-Mart. Even for products without any publicity, after entering Wal-Mart, sales can skyrocket.

This is people's trust in Wal-Mart, and it also proves Wal-Mart's brand value.

Wal-Mart's global layout suppresses the rise of other supermarket groups. Even in Europe, where supermarkets first appeared, no supermarket group can compete with Wal-Mart.

Wal-Mart once wanted to enter the Chinese market very much, a huge market with a population of more than 1.3 billion, with such a large population density, what a high-quality retail market it must be.

It's a pity that when they first investigated, they found that China's economic situation was too bad, and people didn't have the habit of shopping in big supermarkets.

When they were still trying, they found that a supermarket chain had already risen, which was Taihua Supermarket Group.

And the business model of this supermarket has many similarities with their Wal-Mart, Carrefour and other world supermarket giants. The management is not behind at all, and the expansion speed is very rapid.

Wal-Mart finally took a fancy to a place, and found that Taihua Supermarket soon appeared in that place. Even if they just started to inspect this city, the Taihua Supermarket soon appeared in this city.

They were even close to signing a contract several times, but the local government suddenly refused to sign, saying that a retail group had been introduced, and the investment scale of the other party was much larger than their Wal-Mart, and the conditions offered were more generous.

For example, promise to pay taxes, how many local people to hire, and even donate to local road construction, which is just like doing charity.

In the view of Wal-Mart Group, this is simply losing money. Although it is said that once the supermarket becomes bigger, the cost can be reduced, and then it can make a profit.

However, the initial investment of the supermarket is also quite a lot, and the capital occupation is not low. What's more, they are not renting shopping malls, but buying or even building directly.

The crazy expansion of Taihua Supermarket Group naturally attracted the attention of Wal-Mart and other giants at that time. At first, they all thought it was a state-owned enterprise of Huaxia. After all, in their impression, enterprises of a small scale in Huaxia were all state-owned enterprises.

It's not that Huaxia does not allow private business operations, but there will definitely be a lot of restrictions and development will be very difficult.

After investigation, they found that it was a private enterprise, and it was just a joint venture with Xiangjiang. Among them are the shares of Xiangjiang Li Chaoren and the shares of Xiangjiang Fujia. These two families are top in Asia.

Li Chaoren is one of the top talents in the world, and even Wal-Mart and other retail giants have business cooperation with Li Chaoren's company. Their logistics transportation is also inseparable from sea transportation, and naturally it cannot be separated from ports.

At that time, they were most puzzled by another person, a shareholder named Feng Yu, who was also the largest shareholder. Who is this person, and how can he surpass Xiangjiang's Fu family and even Li Chaoren in terms of shareholding ratio?

At that time, Feng Yu was not the richest man in the world, nor was he famous. However, retail giants such as Wal-Mart and Carrefour that intend to enter the Chinese market all remember Feng Yu's name. It is said that he was the one who defied the crowd and allowed Taihua Supermarket Group to be established and expanded so quickly.

It wasn't until later, when Feng Yu suddenly appeared on Forbes, that they realized that this man turned out to be the world's top rich man, and that the shares of Taihua Supermarket Group were only a small part of his many investments. It was also the strategy set by this person that made Wal-Mart and Carrefour finally withdraw from the Chinese market.

Only a few supermarkets have been opened, and an entire management team has to be left behind. The cost is relatively high, and they can't make any money at all, and they even keep losing money.

But they did not give up the opportunity to enter the Huaxia market. They found that there are many chain supermarkets in Huaxia just like the United States back then.

Although it is far from being able to compare with Taihua Supermarket Group in terms of scale, it is still very tempting to integrate two or three companies if it is acquired.

Especially Wal-Mart, at this time has inspected several supermarket chains in Huaxia, but none of these supermarkets satisfied Wal-Mart.

Either the scale is not enough, the land is too safe, or the location is not good, the profit is meager, and some do not intend to sell all of them, but only willing to sell part of the shares. How can Wal-Mart agree to this?

When Wal-Mart was still in contact with these supermarket chains, it discovered that a fierce tiger had come to their base camp!

Taihua Supermarket Group has expanded its business to North America. Before Wal-Mart attacked the Chinese market, Chinese companies actually started to attack the North American market!

Moreover, Taihua Supermarket actually still holds shares in the Polar Bear Supermarket Group, and its annual turnover has suddenly exceeded 100 billion US dollars. This is a challenge to their Wal-Mart.

Wal-Mart headquarters immediately ordered to acquire at least one supermarket chain in Huaxia as soon as possible, and Wal-Mart will fully enter the Huaxia market!

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