Wal-Mart China today announced the resignation of Ed Chan (陈耀昌), President and CEO of Wal-Mart China. Scott Price (贝思哲), President and CEO of Wal-Mart Asia will be Chan’s temporary successor.
It is reported that Mr. Chan is leaving for personal reasons, Mr. Chan had served Wal-Mart for about five years. In addition, senior vice president of human resources in Wal-Mart China, Wang Yujia (王渝佳) has resigned.
The resignation of Ed Chan is related to the public concern about the fake products found in Wal-Mart stores in Chongqing recently. Wal-Mart’s 13 stores in Chongqing were all involved in selling fake “green pork”, and sentenced to a fine of 2.96 million yuan by the local industrial and commercial bureau. The stores were shut down for 15 days and 37 people involved were arrested by the police.
Since entering Chongqing in 2006, Wal-Mart was penalized for a total of 21 times, nine times in this year.
Wal-Mart entered the Chinese market in 1996, the first Wal-Mart Supercenter and Sam’s Club stores were built in Shenzhen. Today, the company is operating a variety of business in the Chinese market, including shopping malls, Sam’s Club stores, community shops. As of October 1, 2011, Wal-Mart has been operating 353 stores in 130 cities in China, creating nearly 100,000 jobs in China.