Tomahawk, WI 10/09/2013 (BasicsMedia) – If there is one accusation which has been levied against Wal-Mart Stores, Inc. (NYSE:WMT) it is that it performs better in the U.S more than anywhere else. This is quite interesting for a company with a global presence in many countries, and not just the U.S. It would be quite understandable if the company had concentrated its efforts only in the U.S. But the fact that it is a global brand makes this scenario quite hard to swallow. However, encouragingly, the company ahs now started shifting its attention to other markets, principally in China.

 This is not to be mistaken to mean that it is the first time WMT is looking to set foot in China. To the contrary, the company has been in China for quite some time. It already boasts of a presence in 118 China cities spread all over the nation. The number of stores all over China currently stands at 398, and there is real hope that the company could expand further in the nation. It has a vibrant policy when it comes to expansion. The irony is that all these Chinese stores haven’t brought the sort of returns WMT was looking for from this nation.

In a number of the 118 Chinese cities, WMT is classified as the second or third choice among all retailers. It faces real task to ensure that it is not a second or third choice for shoppers, but that it retains the number one status across all these states. This is what will be of great benefit to WMT in the long term and allow its China stores to perform at the same level as those in the U.S. Furthermore, WMT is interested in a number of acquisitions in China since it believes that this strategy will also have a major bearing on how the stores perform going forward.

China acquisitions have the potential of transforming WMT into a major player in the retail business in the nation. It has to work hard to be the dominant player in China, although this could be quite a challenge. However, given the fact that the middle class is growing massively in China, the acquisitions are quite justified and there is nothing wrong with WMT taking this path. The company is yet to release more details regarding which Chinese retailers it wants to acquire in order to increase its market share in China. Hopefully, the details will come out soon.

 WMT is interested in particular regions in China where it intends to make acquisitions of retailer companies which already have a significant presence there. Wal-Mart Stores Inc first set up shop in China 1996. Since then, its China operations have added billions of dollars into the company’s coffers. Even though its operations in China have always been dogged with a lot of controversies, this has not stopped the company from going ahead with its latest acquisitions. It has already cracked the Chinese market, now it has to bring it at par with the U.S operations.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.