Report: Wal-Mart Bidding $100M for Chain in China
Beijing, Wal-Mart Stores has emerged as the leading bidder to buy a chain of 100 hypermarkets in China, but a final agreement has yet to be reached, according to a report in The Financial Times. The company is reportedly bidding about $1 billion to buy the chain from Trust-Mart, a Taiwanese company.
If completed, the deal would vault Wal-Mart past its rival, Carrefour SA of France, in the number of hypermarkets in China. Currently, Wal-Mart has 66 stores in China. The chain has said it plans to increase fivefold in size in that country in the next five years.
RILA Backs Bush’s New Law
Arlington, Va., President George W. Bush signed the Security and Accountability for Every (SAFE) Port Act into law on Friday at a White House ceremony. The legislation enhances the multi-layered, risk-based cargo-security system the U.S. government has developed since Sept. 11, 2001. The Retail Industry Leaders Association (RILA) congratulated the bipartisan effort that resulted in the bill’s approval by Congress.
“All Americans can celebrate the signing of the SAFE Port Act into law,” RILA senior VP Paul Kelly said in a statement. “This comprehensive cargo-chain security legislation is now the law of the land, thanks to months of hard work by a bipartisan group of lawmakers, who worked with private sector stakeholders to develop comprehensive legislation that builds on the current supply chain security system.”
Costco 4Q Earnings Edge Up
Issaquah, Wash., Costco Wholesale Corp. said Thursday fourth-quarter earnings edged up 1%, driven by a 19% revenue increase, an unexpectedly strong operating performance late in the quarter and lower-than-expected workers’ compensation costs.
Net income grew to $355.6 million for the period ended Sept. 3, from $354.7 million a year ago. Revenue increased to $19.9 billion from $16.7 billion last year. Same-store sales rose 8%.
Net income for fiscal 2006 increased to $1.10 billion, from $1.06 billion a year ago. Revenue rose to $60.2 billion from $53 billion.