Wal-Mart Makes Mistake That May Affect Sales in Major Markets

Paul Kleiman, News Editor

Wal-Mart Stores Inc, which is known to the retail industry as a number one competitor, recently recalled donkey meat intended to be sold in select areas of China after tests revealed that the products contained genetic parts of other animals.

Wal-Mart has promised to reimburse all who bought the tainted “Five Spice” donkey meat. However, industry agencies in eastern Shandong province continue to investigate, building on findings from the Drug Administration, which reported that the product contained fox meat.

Additionally, the scandal could put a dent in Wal-Mart’s relationship with the market in this rapidly industrializing area, worth 1 trillion. Wal-Mart has made their desired initiatives open to the public, stating that they want to build 110 new stores in the next few years. The stats about the potential that this market could provide for the largest retail store in the world show how large of a loss this scandal could lead to. According to the Institute of Grocery Distribution, the set growing-rate was $1.5 trillion by 2016.

“This is another hit on Wal-Mart’s brand,” said Shaun Rein, Shanghai-based managing director of the market research in China. “… [it signifies that] wealthy shoppers will start to lose the trust they had before.”

Prior to the newsbreak, Wal-Mart was close to overcoming some past indifferences that came from a previous lack of exercising precautions. Wal-Mart, French grocer Carrefour SA, McDonald’s Corp and KFC-parent Yum Brands Inc, among others, were castigated by the Chinese for previous wrongdoings in the past. The topic still reigns as a sensitive one in a country mentally stained by everything from the fatal tainted milk scandal to the problems that arose over “gutter oil.”

So, as many people suffer from their relationships to Wal-Mart’s slip up, and the Chinese people’s sense of wariness is kindled once again, who knows how long it will be until the affluent Chinese put another piece of donkey in their mouths—or better yet, get a chance.