Walmart’s Ongoing Store Closures Intensify the 'Aging' Crisis of Traditional Supermarkets

Business Adjustment Precedes Personnel Changes Walmart’s 27-Year Presence in China Has Seen Seven Leadership Transitions Walmart entered mainland China in 1996. Over its 27 years in the Chinese market, it has appointed seven different CEOs. Starting from 2012, some observers jokingly noted that Walmart had replaced one China CEO roughly every two years. Such frequent leadership changes, on one hand, reflect rapid corporate growth and ample opportunities for talent advancement; on the other, they signal a pattern where business realignment precedes personnel adjustments. Walmart’s journey in mainland China has spanned the heyday of hypermarkets, the boom of e-commerce, the rise of new retail channels—and is now entering a phase of decline for traditional brick-and-mortar stores. 1996 Peter Cheng, Walmart’s Global Vice President and President of Asia, assumed the role of President of Walmart China. 2002 Chee Seng Chang, from Hong Kong, took office as Walmart China’s new President in Shenzhen. He stepped down quietly three years later, after which Peter Cheng resumed leadership. 2006 Peter Cheng resigned from all Walmart positions. Chan Yew Chiang—formerly CEO of Wellcome Supermarket (Taiwan), under Dairy Farm Group—took over as President of Walmart China. He stepped down in October 2011. 2012 In February, Greg Foran became President and CEO of Walmart China. He previously served as CEO of Woolworths, Australia’s largest retailer. 2014 Kurt Jetta succeeded Greg Foran as President and CEO of Walmart China. 2016 Kurt Jetta was transferred to become President and CEO of Asda in the UK. Dirk VanDen Berghe, then President and CEO of Walmart Canada, assumed the role of President of Walmart China—and concurrently served as President of Walmart’s Asia Region. 2018 Walmart China’s Hypermarket Business President, Wen-Yuan Chen, was formally promoted to President and CEO of Walmart China, continuing to report to Dirk VanDen Berghe. 2020 Wen-Yuan Chen left Walmart for personal and family reasons, and Xiaojing Zhu succeeded him as President and CEO of Walmart China. Naturally, since Xiaojing Zhu assumed the presidency and CEO role, Walmart’s strategy in China has clearly shifted—toward warehouse membership stores and digitalization. According to Walmart’s latest financial report for Q4 FY2023 (ended January 31), net sales in China rose by 13.5%, while comparable sales increased by 13.3%. The report highlights strong performance from Sam’s Club and e-commerce operations, alongside improved results for Walmart’s hypermarkets. In Q4, e-commerce net sales accounted for 48% of Walmart China’s total net sales—a 70% year-on-year growth. In 2022, Sam’s Club surpassed 40 stores in China—the highest number among paid warehouse membership retailers in the country—and its paid membership base exceeded 4 million. Moreover, numerous emerging first-tier and provincial capital cities have actively engaged Walmart in discussions about introducing Sam’s Club, making Walmart’s strategic focus on warehouse membership stores unmistakably clear. Traditional supermarkets are currently experiencing: 'Aging,' 'Homogenization,' and 'Diversification' According to the China Chain Store & Franchise Association’s (CCFA) 'Top 100 Supermarkets in China 2021,' six of the top ten supermarket brands on the list reported a year-on-year decline in store count in 2021. Carrefour’s store count fell by 13.2%, Walmart’s by 7.7%, and Yonghui’s by 7%.

Heroism vs. Systemic Contribution: A Reflective Inquiry into the Role of Professional Managers, Inspired by Lai Yuwen’s Departure

What should have been calm, composed, and effortless—has instead become hurried, chaotic, and frantic. When a company’s CEO chooses to depart upon completing their term—even while delivering outstanding financial results—external attention inevitably gravitates toward the stark contrast between 'performance' and 'departure.' The story of Vanward Electric and Lai Yuwen exemplifies precisely this dynamic. This 'outsider' CEO, who spearheaded transformative initiatives over three years, officially stepped down this November upon conclusion of his term. A prevailing narrative simplifies this transition as a clash between the 'talented steed' from Midea’s ecosystem and the 'traditional soil' of private enterprises—an appealing 'wise patron–exceptional talent' binary. Though highly shareable, such framing risks obscuring deeper, more complex governance questions inherent in modern corporations. When we shift our gaze away from individual narratives and toward broader commercial practice, it becomes evident that Lai Yuwen’s case is far from isolated. It reflects a systemic shift in managerial capability requirements as enterprises transition from high-speed growth to high-quality development. 'Short-Term Victories' vs. 'Organizational Wounds': Management Compensation Driven by Short-Termism During Lai Yuwen’s tenure, organizational flattening and SKU rationalization delivered immediate cost efficiencies and boosted profitability—results plainly visible in financial statements. Yet healthy corporate operations resemble an iceberg: financial figures represent only the tip above water; beneath lie organizational resilience, cultural alignment, and talent pipelines—the true ballast for long-term navigation. It warrants reflection: do transformation initiatives executed with 'swift, decisive action' carry hidden risks of 'organizational wounds'? Such risks recur frequently across cases chasing 'quick wins.' For instance, Asda—the UK’s third-largest supermarket—undertook a massive SAP system upgrade to achieve independence from former parent Walmart. Intended to enhance autonomy and efficiency, the project backfired due to 'poor integration, insufficient testing, and inadequate capacity planning.' This multi-million-pound digital transformation severely disrupted inventory flow between warehouses and stores, causing quarterly revenue to decline. It demonstrates that even grand cost-cutting and efficiency blueprints can result in 'winning the battle but losing the war' if execution is crude and neglects the fundamentals of operational stability. A deeper risk lies in what might be termed 'management compensation': to fulfill short-term performance commitments within one’s tenure, some executives may disproportionately prioritize near-term financial metrics while comparatively underinvesting in long-term organizational capabilities, innovation systems, and cultural cohesion. While this approach yields eye-catching data quickly, it may leave companies vulnerable to discontinuities in momentum and weakened organic growth potential down the line. For a well-established enterprise like Vanward, whose board and controlling shareholders value sustained growth built on stable operations—not unpredictable, high-risk leaps—friction between 'quick-win' logic and the company’s underlying 'stability-first' DNA may ultimately make parting ways an inevitable choice. 'Transplanted' Experience vs. 'Integrated' DNA: Underlying Tensions in Talent Culture Managers from the 'Midea ecosystem' are renowned for their formidable execution power and performance orientation—a testament to the success of Midea’s cultivation system. Yet this powerful culture, forged in a specific environment, may also foster unconscious path dependency.

Sales at UK supermarket Asda stall as new boss takes reins

18 hours ago

Asda reported flat third-quarter sales under new CEO David Potts, with food sales growing 0.1% despite economic headwinds, highlighting demand challenges in the UK grocery sector.

reuters

2026-11-13

Sales at UK supermarket Asda stall as new boss takes reins

Sales at UK supermarket Asda stall as new boss takes reins

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