Two top executives have resigned from Wal-Mart Stores Inc's China business because of "personal reasons," Han Jianjie, in charge of corporate affairs at the company, confirmed to the Global Times Tuesday.
Chief Financial Officer Roland Lawrence and Chief Operating Officer Rob Cissell have quit "to explore new opportunities," the company said.
The company did not disclose any information about replacements for the two executives, merely saying that Wal-Mart still intends to expand its presence in China. The company currently has more than 90,000 staff in China.
Late last year, Wal-Mart invested in Chinese online retailer 360buy.com. Earlier this month, Wal-Mart announced plans to buy a stake in online supermarket operator Yihaodian, indicating the company's intent to expand its online efforts in the Chinese market.
"I don't think the CFO and COO's departure will have a big impact," said Wang Xianqing, director of the Institute of Economics with the Guangdong University of Business Studies. "There's a strict system and regulations in this kind of company, and the top executives, especially in China, are symbols actually."
Wal-Mart is not the only foreign company that has experienced difficulties in China recently. The world's largest home improvement retailer, Home Depot Inc, closed its store in Beijing in January. In February, Best Buy Co closed its nine stores in China.
"It's a common phenomenon for foreign companies to close their stores in China because of severe competition in the retail market," Wang explained.
Wang said that mergers and joint ventures make it easier for foreign companies to acclimatize to the Chinese market, "because there are differences in the cultural background, the consumption customs and the status of economic development," he said.
Global Times May 25 2011
