M&As

In 2007, Walmart announced it had acquired a 35 percent stake in Trust-Mart Group, one of the biggest chain retailers in southern China, for $264 million. The US retailer also got a 30 percent additional voting right.

In 2005, the most recent year for which figures are available, Walmart had about $1.3 billion in sales in China, trailing Trust-Mart, which had revenue of $1.7 billion, according to the China Chain Store and Franchise Association.

The acquisition was aimed at further strengthening Walmart's presence in China by having Trust-Mart's national sales, distribution and purchasing networks.

The acquisition also helped Taiwan-based Trust-Mart expand on the Chinese mainland. In 2009, it had more than 100 retail outlets in 34 cities on the mainland and employed more than 30,000 people. Its revenue amounted to 16.5 billion yuan ($2.58 billion) at the time.

The acquisition is consistent with Walmart's strategy to explore international markets. With growth slowing in its home market, the world's top retailer is moving aggressively to capture market share in developing economies, including Brazil, India and China.

According to Daily Finance.com, a US financial news service, net sales in 14 developing economies are expected to make up 26.1 percent of the world's retail industry. Walmart International has grown substantially, with its number of stores forecast to reach 4,557 this year, from 2,733 in 2007, an addition of around 360 stores a year.

However, M&As are not always smooth. In 2010, the acquisition of the rest of Trust-Mart got delayed, a setback rumored to be the reason for the recent departures of several top executives.

The US retailer said that it has appointed Sean Clarke as the new chief operating officer of its Chinese division. Clarke was previously head of finance for the company in Canada.

It also named Steve Smith chief marketing officer for China. Smith was previously senior vice-president of strategy, marketing and communications with Delhaize Group.

A number of executives have also left Walmart's Chinese operation recently - Rob Cissell, former chief financial officer, in May, and Shawn Gray former vice-president of Walmart China's hypermarket operation, in June.

"The recent changes in our management level and the promotion of local staff are aimed at localizing personnel," said Chan. "And we are confident that the mix of Walmart global talents and strong local leaders will guide the company to further success in this booming market."

Walmart said that as of Aug 5, it has been operating 346 supermarkets and six Sam's Clubs in 128 cities in China.

Though it developed quickly in China, in recent years it has had to compete with increasingly sophisticated Chinese retail conglomerates such as China Resources Retail Group Co Ltd, Shanghai Brilliance Group and Lianhua Supermarkets Holding Co Ltd, as well as international counterparts such as France-based Carrefour Group, the UK's Tesco PLC and the German retailer Metro AG.

According to Kantar Worldpanel, a British research firm, Taiwan-headquartered RT-Mart is the biggest retailer on the mainland, with a 6.3 percent market share in the year ending June 17. Foreign chains such as Walmart, Carrefour and Tesco have a smaller market share in China than RT-Mart.