Chapter 223: Launching a Self-Built Supermarket: Carrefour
Yang Wendong nodded and said, "Alright, the funding is already prepared. As long as you're in agreement, I'll release it immediately. But I do have a suggestion. In the future, Walmart should consider owning the properties where your stores operate. Even if it's just buying a large warehouse or building on an empty lot, it's more cost-effective in the long run. Otherwise, when leases expire in ten years, problems will multiply."
In his past life, many supermarket chains in mainland China had been bled dry by landlords.
RT-Mart, for instance, had owned some of its properties in the early days. But the rented ones became a nightmare once the leases expired—years of investment couldn't simply be moved, and landlords exploited this leverage.
Even other foreign supermarket giants like Walmart, Carrefour, and Auchan started out by leasing properties, only to be forced out later due to rising rents.
In contrast, Metro, which insisted on owning its stores, grew more slowly—but survived with much less pain.
The U.S. market might be different in some respects, but capitalism is universal. Without owning your own locations, you'll eventually lose leverage, either by being forced to move and lose your customer base, or by being squeezed dry by landlords.
Sam Walton nodded. "Yes, I understand the pros and cons. But in the early stages, I just didn't have the capital to buy property. If we end up working together, I'll seriously consider this."
"Good. Just a suggestion," Yang Wendong said with a smile.
His confidence in opening supermarkets in Hong Kong—or eventually across Asia and even into mainland China—wasn't just based on his foresight of the future or understanding of retail. The key was that he started early and had enough capital to own property outright.
As long as he acquired enough real estate in Hong Kong or other Asian cities, he'd gain a massive cost advantage in retail and services. With today's property prices—even in Tokyo or Hong Kong—he'd be buying at a fraction of future valuations.
That was the biggest edge of being a time-traveling entrepreneur.
Of course, operations also couldn't be sloppy. He intended to hire experienced people from within Walmart, combine their know-how with his vision and capital, and build something powerful.
After chatting for a while longer, Yang Wendong left Walmart. It seemed like his U.S. trip had mostly fulfilled its purpose.
Western companies weren't opposed to foreign investment. For small businesses like Walmart—especially ones that weren't in sensitive industries like tech—the U.S. government wouldn't get involved.
The only thing Yang Wendong had to watch for was the possibility of the company turning around and screwing over its investors. That kind of mutual sabotage between founders and backers was common in the business world.
...
The Next Day
Three Walmart mid-level managers came to Yang Wendong's hotel.
"Mr. Liu, Mr. Ferren, Mr. Barney—it's a pleasure to meet you," Yang Wendong greeted them warmly. He had already learned their names and was happy to welcome them.
What surprised him slightly was that Liu Huayu, one of the three, was a Chinese-American who had followed Sam Walton from the early days.
"Hello, Mr. Eric," the three replied politely.
"Please, have a seat," Yang Wendong gestured. The group settled into a seating area beside the hotel's swimming pool. A waiter came by with drinks.
After some small talk, Yang Wendong got to the point. "Since you're all here, I assume you're open to the idea of working in Hong Kong. So this is probably just a matter of compensation. I'm willing to pay the standard package used by American companies when sending staff abroad—housing, transportation, and so on. Just be cautious with driving—traffic rules are different."
Liu Huayu said, "Mr. Yang, we do have a few other requests—housing arrangements, travel allowances…"
Yang Wendong listened carefully. These were reasonable requests. If he hadn't believed so strongly in the future of the supermarket industry, he wouldn't have bothered with this kind of recruitment himself.
Eventually, he agreed to their terms. Then he said, "Mr. Liu, since you're Chinese, communication will be easier. I'm planning to open a Walmart-style supermarket chain in Hong Kong. The first store will be in a large shopping center. Here's the location…"
Yang Wendong described the general setup for Changxing Plaza.
After hearing it, Liu Huayu nodded. "That's a great location. Lots of foot traffic and affluent residents nearby. I don't think business will be a problem."
"I'm not worried about traffic," Yang Wendong replied. "The real issue is sourcing enough products."
Supply chain management is critical in every industry—not just manufacturing but also retail.
If there were already other supermarkets in place, you could copy their supply chains. But as the first mover, you had to build everything from scratch—figuring out where to buy every category of product.
Liu Huayu said, "I'm not familiar with Hong Kong, but it's a functioning city with millions of residents. That means everything you need already exists—you just have to buy it.
What'll be hard is the small stuff—products where our order volume is too low to negotiate discounts, and shipping them piecemeal will be expensive."
"I know a local trade merchant in Hong Kong. He can help," Yang Wendong said. "He won't be able to supply everything, but at least he'll know where to get it."
"That would help a lot," Liu Huayu nodded. "Even if he can't source everything, it's better than starting blind."
"Alright. Once you're in Hong Kong, I'll introduce you," Yang Wendong agreed.
Zhao Chengguang was Changxing Industrial's distribution partner in Hong Kong. He was the exclusive distributor for Post-it notes, adhesive hooks, mousetrap pads, and luggage. That was Yang Wendong's way of rewarding his early collaborators.
Before meeting Yang Wendong, Zhao's main business had been supplying general stores and small retailers. That made his operation a good match for the upcoming supermarket chain.
"Thank you, Mr. Yang," Liu Huayu said.
Yang Wendong added, "There's something else. In Hong Kong, we have a unique phenomenon—Guohuo Stores. These are specialty shops that import cheap mainland Chinese goods and sell them to locals.
You're probably aware of the mainland situation. These stores exist primarily to earn foreign exchange. So a lot of the time, they're willing to sell at a loss."
"Selling at a loss?" Liu Huayu was startled. "How many of these stores are there? And how comprehensive is their inventory?"
"There are quite a few," Yang Wendong replied. "But our first few stores will be in high-rent areas where they aren't very common. As for their products—they cover most light industrial and agricultural goods."
His early supermarket plan was focused on affluent areas of Hong Kong Island.
There were three reasons for that: one, strong consumer demand and dense populations; two, better returns from investing in high-value real estate; and three, avoiding direct competition with Guohuo Stores.
Yang Wendong didn't want a price war. Competing with heavily subsidized rivals was a losing game.
Liu Huayu asked, "Then can we source goods from the mainland?"
"We probably can," Yang Wendong replied. "Guohuo Stores are backed by China Resources Group, but since China Resources wants to maximize foreign currency income, they can't rely solely on their own supply chains. Their goods are sold to many shops across Hong Kong, including food, vegetables, and light industrial products. Whether we can cooperate with them—well, once you're in Hong Kong, you'll have to talk to China Resources directly."
When Yang Wendong first planned to start his supermarket chain, he had consulted Zhao Chengguang and learned that even Zhao's inventory was largely sourced from China Resources.
But even China Resources couldn't cover every daily necessity. Domestic production couldn't make everything, and logistics costs had to be considered—otherwise, why would so many foreign trading houses still be thriving?
"Understood," Liu Huayu replied.
Yang Wendong asked, "So when will you head to Hong Kong?"
Liu Huayu said, "We'll need about a month. It's not just about our work at Walmart—we all have families here in the U.S. We'll need time to adjust before going overseas long-term."
"I understand," Yang Wendong nodded. "So head over in a month. I'll return a bit earlier to scout for properties nearby. If I can buy some, we'll be able to open several stores together. That'll spread out procurement and logistics costs."
Supermarket expansion couldn't be scattered all over the place. You had to start in one area and expand outward in a hub-and-spoke fashion—Walmart had done the same.
The area around Changxing Plaza was prime real estate. Securing large enough properties for supermarkets wouldn't be easy in the short term.
"Alright, I'll prepare some preliminary materials and summarize some of my past experience," Liu Huayu said.
"Great. Let's do our best and get this new venture up and running when we meet again in Hong Kong," said Yang Wendong.
Liu Huayu asked, "By the way, Mr. Yang, what are we calling this new supermarket?"
Yang Wendong smiled and replied, "Jialefu—Home of Joy and Fortune. It symbolizes a supermarket that can provide everything a family needs for happiness and well-being."
In his past life, this was the Chinese name Carrefour adopted when it entered China in the 1990s. The name had a lovely ring to it—much better than Auchan, RT-Mart, or Metro. Unfortunately, due to poor management, Carrefour eventually exited the mainland market. Before Yang Wendong transmigrated, no one even mentioned the brand anymore.
"Jialefu? That's a great name," Liu Huayu praised.
Yang Wendong handed over a business card. "This is Lin Youten—he's in charge of my U.S. operations. If you need anything—flights, relocation subsidies—he'll take care of it."
"Thank you, Mr. Yang. We'll take our leave now," Liu Huayu said, pocketing the card and leaving with the two American colleagues.
Three days later, news came from Sam Walton. He agreed to Yang Wendong's offer of 15% equity, but on the condition that Yang Wendong also provide a low-interest loan of $300,000 to help Walmart with its expansion.
Yang Wendong readily agreed. This amount of capital was negligible compared to what he had spent acquiring China Motor Bus. And the future returns—compared to even Warren Buffett's best investments—would be staggering.
Under the supervision of both parties' legal teams, Yang Wendong signed the shareholder agreement and shook hands with Sam Walton for a commemorative photo. It would later become a historic image.
Each side kept a signed copy of the contract, and another was filed with the local business bureau.
Yang Wendong said, "Sam, the funds will be in your account by tomorrow afternoon. I hope you can now go full throttle in the U.S. retail sector."
"Haha, Eric, you're joking," Sam Walton said modestly. "If I can just succeed in Arkansas, I'll already be thrilled."
"I believe those with true ability won't settle for one small town," Yang Wendong laughed.
At this point, even in his wildest dreams, Sam Walton probably couldn't imagine becoming the richest man in America or having his supermarket chain dominate the entire nation.
But this was common. Most of the world's top billionaires didn't foresee their own rise during the early stages of their careers. They simply kept going, caught the right wave, and suddenly found themselves flying high—too far along to stop.
Sam Walton shrugged and said, "Well then, I'll take that as a blessing."
"You're welcome," Yang Wendong said with a smile. "And Sam—don't forget, our contract includes an annual audit clause."
That was both a friendly reminder and a safeguard for Yang Wendong's own interests.
The entrepreneurs he sought to invest in—like Sam Walton, like Wang Yongqing—were all extremely capable. But that only meant Yang Wendong had to be extra careful to protect his equity.
Sam Walton was no fool. "Don't worry. I understand. Our books will always be open for review."
"Good," Yang Wendong nodded.
…
The Next Day
A total of $476,400 was transferred to Walmart's bank account. With that, the agreement took full effect, and Yang Wendong became a 15% shareholder of Walmart.
At the same time, Walmart now owed Yang Wendong—its second-largest shareholder—a $300,000 loan.
With all matters settled, Yang Wendong gathered his team and once again chartered a Pan Am business-class flight back to Hong Kong.
On the plane:
Bai Yushan asked curiously, "Dong-ge, Walmart clearly needs money. If you're that optimistic about them, why didn't you ask for more shares? Why only 15%? And you even lent them money?"
Yang Wendong smiled. "More shares aren't always better. If you ask for too much, the founder might start to guard against you—or refuse to work under you altogether.
Right now, they'll say yes to anything because they're desperate. But once they get through the rough patch, things could change. Business isn't just about money—it's also about balance."
"I get that," Bai Yushan said. "But even so, 25% wouldn't have been too much."
"Maybe," Yang Wendong replied lightly. "But if I want more equity in the future, I'll have plenty of chances. No need to grab it all now."
From what he knew, the Walton family still held more than 50% of Walmart's shares even after decades. That meant they were deeply protective of equity and ownership.
If he had demanded too much now, the Waltons might have resisted—or moved assets to dilute his stake later. That would have been worse.
Better to hold a smaller share now, gain their trust, and quietly increase his stake later—perhaps when Walmart went public, or by buying from other shareholders.
This approach would also help avoid drawing attention from U.S. regulators as Walmart grew too large.
"You're right. American companies do love going public," Bai Yushan nodded.
"Don't overthink it," Yang Wendong smiled. "This trip to the U.S. went exactly as I planned. Time to celebrate—double happiness."
"On the plane?" Bai Yushan gave him a look.
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