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DetailkeytoretailsuccessWal-Mart'snewChinaCEOisasticklerforgettingthingsjustsoNewZealanderGregForancausedquiteastirbyvisitingaWalmartstoreinWangjing,alargeneighborhoodinnorthernBeijing.Wal-Martcurrentlyhas380storesinChina.Salesgrowthinthecountrywasamongthehighestfortheglobalretailerin2023.[Photo/ChinaDaily]ThenewexecutivefortheChinaunitoftheworld'slargestretailerbysalesistall,fast-walkingandsharpbutdown-to-earth.InhisfirstmeetingwithChinesemediarepresentativessincehisappointmentinMarch,Foranchosetoinvitereporterstovisitoneofhisstoresbeforebeinginterviewed.Hecheckedonthemerchandizeattentivelyandofferedopinionsinagentlebutfirmtone.Aretailveteranof30years,ForanprioritizestheWal-MartStoresInc(brandedasWalmartsince2023)mottothat"retailisdetail".Hepracticestheconceptinmultiplevisitstostores,oftenappearingunannounced.HavingbeenappointedasthenewpresidentandchiefexecutiveofficerforWalmartChinaonlysevenmonthsago,Foranmakessuchvisitsthreedaysaweek,havingbeento240ofthe380storesintheChinesemainlandsofar.Ononeshelf,adozenbagsofdeodorantthatappearedtooheavyforthehookcaughthiseye.Forantoldhisassociatestogetthepackagingredesigned.Atsectionswheresomeofitemswereoutofstock,heaskedforthemtoberefilled."Whenwintercomes,therewillbeabigdemandforheatersandelectricblankets,"hepointedout.Passingbyapileofneckpillows,henoticedthebarcodewashiddeninthepackaging.Suchpackagingwillprolongcustomers'check-outtime.Hesaidtothemanagerofthestore:"Howisitscannedatthecheckout?Thisisanexampleofthingsnotbeingpackagedproperly".Pointingatasurfacecoveredwithout-of-seasonclothes,Foranwasunhappywiththedisplay.Hesaid:"Youneedtobecarefulhowmuchyouputonthetable.Itishardtoselectanitemevenifthepriceisgood.Itwouldbebettertoleaveitonthehangerontherackwithabigpriceonit."Turningtoanothercounterwithdiscountedgoods,Foranformedadifferentopinion,saying:"Whenthepriceisverylow,peoplewillgotothecounter."ThenewCEOhasquicklygainedrespectfromhisChineseassociateswhoyearnforprofessionalguidanceandadviceintheirdailywork."Hisobservationsfocusondetailandoperations,"saidLucyLang,districtmanagerofWalmartBeijing."Helookedatthingsinawaythatcustomerslookatthem.Hehasveryhighstandardsforqualityandprice.Heisveryprofessionalwhenitcomestomakingajudgement.Andheisnice."Themostfrequentquestionsheraisedfocusonagoodmixtureofmarginsandsales.Butmostimportantly,ForanwantshisassociatestounderstandwhatmatterstoWalmart."Themoretheyunderstandaboutthat,thebetterdecisionstheymakeaboutwhatitemstheyaregoingtosellinthestore,"hesaid.HispredecessorasheadoftheChineseunit,EdChan,quitinOctoberlastyearamidapork-labelingprobethattemporarilyshutall13ofthecompany'sstoresinChongqingmunicipalityinSouthwestChina.Walmartsaidthereasonitwantedtohaveanewleaderisbecauseitwantstotakethestorestoanewlevel,oneof"excellenceandbeingabletodeliveronfoodsafetyandvalue"inevenbetterstores,DougMcMillon,WalmartInternationalpresidentandCEO,saidinFebruary.Thecompany'sfastexpansionstrategyinthepastfewyearsdidnotworkwell.Lastyear,WalmartChinarankedNo4inthetopforeignchainretailerlistintermsofrevenue,afterRTMart,CarrefourSAandYum!BrandsInc.ThelistwaspublishedbyChinaChainStore&FranchiseAssociationinMaythisyear.Toregainabalanceindevelopmentandtheconfidenceofstaffandcustomers,Walmartiseagertoshowcaseitsreturnto"Americanvalues".Unlikehispredecessor,ForandoesnothaveaChineseface.ButhebroughtthesameWalmartculturethatvalues"servantleadership".AtameetingwithChineseemployeesmarkingthestartoftheyear,hedroppeddownononekneeasademonstrationofthatconcept."Iwasprobablyfeelingtiredafteralongflight,"hejoked."Wepreparefantasticmerchandisinginacleanwaywiththerightdisplayandexcellentfreshfood.Butserviceatthecheckoutisimportant.Acustomer'stotalexperienceofastorecanbeaffectedbyonefinalexperienceasheorsheleavesatthecheckout.Wemusthavewonderfullytrainedandengagedassociates.Servantleadershipisthewayforwardforthemtoachievethat,"hesaid.Foranbeganhiscareerwithapart-timejobstockingshelvesatWoolworthsinAustraliaattheageof15,ultimatelyleadingtohismostrecentroleasheadofWoolworths'supermarketdivision.HiscareerincludesseveralseniorroleswithinWoolworthsincludinggeneralmanagerofBigW,thediscountdepartmentstoredivisionandDickSmith,whichspecializesinconsumerelectronics.InForan'sopinion,toleadtheoperationsinthefastest-growingmarketintheworldis"theopportunitytomakeadifference".WalmartenteredtheChinesemarketin1996andhad370outletsbyMarch.Themarketcontributedlessthan10percentofWalmartInternational'ssalesrevenue.ChinawasoneofthecontributorstothehighestdollarincreasesinWalmartInternational'snetsalesgrowthin2023,whichgrew15.2percentto$125billioninnetsales.Earlythisyear,Walmartannounceditwillremaincommittedtoallocating60percentofitsfundingtodevelopinghighergrowthmarketsand40percenttodevelopedmarkets,accordingtoMcMillon.WithhighhopesfortheChinesemarket,ForansaidheishearingreallypositivethingsaboutWalmartinChinaanditwillcontinuetoopennewstores-around30ayear-andbuildnewdistributioncentersandSam'sClubs,namedafterfounderSamWalton,whoopenedthefirststorein1962.Sam'sClubisachainofwarehouseclubsthatsellgroceriesandgeneralmerchandise,ofteninlargequantities.Sam'sCluboutletsare"membership"stores.Itisalsothebiggestprivateemployerintheworldwithmorethan2millionemployees.TheopeningofnewstoresinChinaisareductionontheapproximate40ayearpreviously.ForeignretailgiantsinChinaareexperiencingdifficultiesinmaintaininggrowth.BritishretailgiantTescoPlc,theworld'sthird-largestretailerbysalesrevenue,hasclosedfourstoresinChina.ThankstotheweakEuropeaneconomy,CarrefourSA,theworld'ssecond-largestretailerbyrevenueandowningaround210storesin64Chinesecities,hasalsopulledbackitsfastexpansionplansinthenation.ZhaoPing,deputydirectoroftheconsumptionandeconomicresearchdepartmentoftheChineseAcademyofInternationalTradeandEconomicCooperation,saiditissmartformultinationalretailerssuchasWalmarttoslowdowntheirexpansioninChina.ShecitedthetoughglobaleconomicclimateandweakgrowthintheChineseeconomyandconsumptionasreasons.Astheeconomytightens,Walmart'svalueinhelpingcustomerstosavemoneypresentsagreatopportunityforWalmart,Foransaid.However,heinsisted:"Wemustnevercompromisethequalitynorourprice.Wemustalwaystryourbest.Wemusthavelowprices."Foransaidhethinksthecompany'sstrategyof"everydaylowprices"and"everydaylowcosts"isoneofthekeydriversthathelpsWalmartbeatrivals.BeingaforeignercouldbeanadvantageasForanlistensandobserves.Inadditiontocloseresearchofhiscompetitors,Chineseandforeign,Foranisalsotryingtounderstandlocalcustomers.HehasspenttimeshoppingwiththreeChinesefamilies.Hefoundtheyliveinaquitesmallapartmentsogettingoutoftheirhomesandgoingshoppingisasocialoccasion.Thediscoveryhasconvincedhimofthevalueofrunningphysicalstoresaswellase-commercestores.ThemovealsohelpedhimbetterunderstandthebuyingpatternsofChinesecustomers,forexample,whyfreshfoodismoreimportantinChinathangeneralmerchandise."Theaverage
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