Wal-Mart to Boost Profitability by Investing More in Food Safety and Quality
Wal-Mart China is intent on focusing on food safety as the largest retailer in the world aims to boost its profitability in 400 of its stores in China. According to Wal-Mart Asia chief executive Scott Price, the company is playing an important role in delivering food safety and quality products to its customers.
A few years ago Wal-Mart was under fire after it was reported that the supplier of donkey meat for the company contain a different meat, and in 2011 the company was also accused of selling expired duck meat and was forced to closed its stores in Chongqing after mislabeling non organic pork and selling it at a higher price. Scott Price was named the head of the Asia Pacific Business in a move that was aimed to revive the slow growth of the company amid stiff competition.
Wal-Mart experience a few problems along the road and China is the only market of the five largest ones that saw a falling in store sales in the second quarter compared to a year earlier. In the global market Wal-Mart reported an income down 3 percent compares also to a year earlier.
Price said that the company will continue to continue to invest aggressively by increasing its spending on food safety to 300 million yuan and will turn its attention to food safety and quality to help push traffic in its stores.