Recently the frequent rumours of acquisition disturbed the world’s largest retail giant Wal-Mart. First it was heard that it would acquire small household electrical appliance enterprise Elec-Tech International Co.,Ltd.. Then there was word that it would acquire a supermarket chain Trust-Mart.. Although the headquarter of Wal-Mart in China denied word of these acquisitions, the market players believed that as regards the current situation of Wal-Mart’s network pattern in China which is not at an advantage, it was very likely that acquisition of the existing supermarket network was incorporated in the Wal-Mart’s strategic intention so as to make up for insufficient channel resources.
 
Linge, the commercial real estate and operation analyst said that the large foreign-funded supermarket brands like Wal-Mart didn’t adapt to Chinese market, which was very likely to lead to the intention of M&A to adjust their development mode. However, because it was late for Wal-Mart to enter the big cities in China and the sites were not ideal, Wal-Mart whose performance was not good was very likely to consider realizing central development of its network pattern by acquisition of existing supermarkets.

Wal-Mart, the leader in US retail industry has never got the upper hand on the Chinese market. Statistics showed that the operating revenue of Wal-Mart’s supermarket in China totaled over USD700 million in 2005 while that of France Carrefour amounted to USD 2.17 bln and Taiwan Trust-Mart in China USD1.42 bln in 2005.

Linge also said that the network pattern was the most important factor which influenced profits gained by the supermarket brands in China, which was reflected in the commercial atmosphere ,consumption levels and the attraction of market share to the suppliers. Carrefour possessed three branches in Gubei, Biyun, Century Park and Lu Jiazui, the four consumption centers in Shanghai, which has made great contribution for its income in Shanghai. In comparison, Wal-Mart’s pattern in Shanghai was far from successful.