19 July 2007 — Beijing (CHN): Wal-Mart is said to be cutting its sourcing from China by as much as $6 billion.
The reduction, reported by the Chinese press, has been attributed to the appreciating Chinese currency slowing sales of some sourced products.
Despite Wal-Mart China denying the reports, it is believed that local suppliers have had their contracts cancelled by the retailer.
Wal-Mart’s commitment to the Chinese market shows no sign of wavering, however, as it plans to double its presence in the country over the next five years from the 84 stores it currently operates.
Terrence Cullen, VP of Wal-Mart’s China operations, said: "The Chinese market is huge. No real market leader has emerged and our eyes are on market leadership of some sort. What we’ll see is aggressive organic growth, probably accelerating each year.”