Boston, MA 06/17/2014 (wallstreetpr) – Wal-Mart Stores, Inc. (NYSE:WMT) has announced it is tripling its spending on food safety in china to 300 million Yuan from 100 million Yuan amid intensified scrutiny of its operations in the country from officials. The retail store expects the increased funding to go towards additional food testing and supplier audits.
Wal-Mart to Carry DNA Testing on Meat Products
According to Wal-Mart Stores, Inc. (NYSE:WMT)’s Chief Compliance Officer Paul Gallemore, the store plans to expand DNA testing into meat products. DNA testing looks to have been prompted’ after the company found fox meat labeled as donkey meat in some of its stores earlier in the year. Wal-Mart is currently carrying out mobile testing labs that will travel from store to store to test the quality of products.
Over the past three years, the giant retail store has been fined $9.8 million on allegations of selling poor quality products as well as engaging in misleading pricing practices. The investments look to be one of the ways that the company is trying to avoid the incurrence of other fines as regulators intensify inspections on the quality of products sold in stores.
Wal-Mart Pushing for Inspection on Manufacturing Sites
Earlier in the year on an interview with The Wall Street Journal, Wal-Mart Stores, Inc. (NYSE:WMT) complained about the fact that responsibility on the quality of products was being shifted to retailers rather than the manufacturers. The retail store is thought to have met with regulators and urged them to intensify their inspection on manufacturing sites, as well as meat processing plants.
Mr. Gallemore has already confirmed that officials have signaled their good will in shifting focus to manufacturers in terms of initial testing. The announcement comes as it is being reported that about 4% of Wal-Mart Stores, Inc. (NYSE:WMT)’s suppliers in China failed testing in the recent past, prompting the retail store to cut some of them. The Chinese government has in the recent past faced rising pressure from the consumer class to stamp its authority on the supply of quality products to retail stores.
Wal-Mart Stores, Inc. (NYSE:WMT) as part of its three year growth strategy announced plans to invest 580 million Yuan in efforts of remodeling its 400 plus stores in the country. The retailer according to recent research data by Euromonitor International is ranked No 3 in terms of Market share.
