Walmart Co.’s Wal-Mart Stores has temporarily closed 13 stores in Chongqing, China for mislabeling pork, a Walmart spokeswoman told Meatingplace.
“We have agreed to temporarily close a total of 13 stores in Chongqing for 15 days,” said International Corporate Affairs Manager Megan Murphy in an email. “We have been in ongoing discussion with the Chongqing Administration of Industry and Commerce (AIC) on the ‘green pork’ situation, to decide appropriate actions to protect customers’ rights.”
“Green pork” refers to Chongqing Administration of Industry and Commerce accusations that Wal-Mart Stores sold more than 63,500 kilograms (14.4 tons) of pork mislabeled as organic and could face fines of 3.65 million yuan ($575,000).
Of the closures, Murphy said, “We believe this will allow us to complete comprehensive actions to upgrade the standards in these Chongqing stores.”
Walmart China headquarters sent a taskforce to Chongqing to work with the respective stores and local government officials after notification of the investigation several days ago.
“We are deeply sorry for the inconvenience this may cause our customers,” said Murphy, “and are even more determined to meet the service expectations they have of us.”
Walmart announced Monday that effective immediately, Scott Price, president and CEO of Walmart Asia, will also serve as interim leader for Walmart China, replacing Ed Chan, president and CEO of Walmart China, who is leaving the company for personal reasons.
In addition, Senior Vice President, People for Walmart China Clara Wong has resigned.
Price will continue to serve both as the CEO of Walmart Asia and as the CEO of Walmart China until a new CEO is named for Walmart’s China operations.
The resignations come just a week after Walmart’s Wal-Mart Stores temporarily closed 13 stores in Chongqing, China for mislabeling pork as organic and faces fines of an estimated $575,000. (See “Walmart stores closed in Chinese city on pork mislabeling charge” on Meatingplace Oct. 19, 2011.)
Walmart entered the Chinese market and opened its first Supercenter and Sam’s Club in Shenzhen in 1996. Currently, Walmart operates a number of formats and banners in China including Supercenters, Sam’s Clubs, and Neighborhood Markets. As of Oct. 1, Walmart had 353 units in 130 cities.