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Government (Issued on : 6th February , 2010)

BD News24

RMG set for Walmart boost

World's largest retailer Walmart's new plans could boost Bangladesh garment exports by more than a billion dollars.

The largest global retailer is planning to procure 20 per cent of its apparels from Bangladesh worth over $2 billion.

Details of a high profile meeting between top executives of the retail giant and a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) emerged hours after the Walmart International CEO had left the country, Friday afternoon.

According to a source privy to the proceedings of the breakfast meeting, the retailer is planning to make a major shift to Bangladesh for procuring apparels.

The source said even the proposition of the figure 'came as a surprise' since it would have a serious impact on the entire industry which exports just about $4 billion worth of apparels to the US market while Walmart purchase amounts to marginally over one billion dollars.

"Their proposal would mean more than doubling Walmart's purchase, which itself is quite substantial mind you."

Himself involved in the garment industry and a top BGMEA office bearer, the source told bdnew24.com late Friday evening that the high profile Walmart delegation was actually looking to secure an assurance of necessary facilities for uninterrupted supply from the prime minister.

However, he said that the prime minister Sheikh Hasina had refused them an audience, probably because 'their approach was not appropriate'.

"They probably did not go follow the proper protocol."

The BGMEA delegates had to go through three layers of security and were not 'even allowed to take a pen to the meeting', he said.

"There was a sense of showdown, which is sometimes a part of these meetings."

The Walmart delegation included C. Douglas McMillon, president and CEO of Walmart International, Jana Carter, a senior director of Walmart's international corporate affairs, David Scogin, vice president for merchandise planning and a newly appointed local representative.

Apparently Walmart's local office in Dhaka is being completely refurbished with new staff from abroad with a new representative, whose name could not be confirmed.

"Their British team is probably going to run operations here because they have been quite successful in this part of the world."

It was evident from the meeting that the high-powered delegation had come to essentially secure an assurance regarding infrastructure and utilities for their supply chain from Sheikh Hasina, the source said.

"In the process they sort of said 'hello' and appraised us of their plans."

But the retail giant, topping $400 billion in yearly business, was not interested in any ethical issues or wages.

Also controversial for its own treatment of workers, the Walmart executives apparently made it quite clear that ethical issues were not important to them.

"All they care about is their profit and their share price."

Earlier BGMEA president, Abdus Salam Murshedy, had told reporters after the meeting that McMillon suggested setting up of a comprehensive industrial zone for the apparel sector that could attract a lot more investment.

"He told us that they consider Bangladesh an important source of apparels. They want to buy more products from here. For that he suggested setting up of a combined industrial zone with adequate gas and power supply for the sector," Murshedy said.

Famous for its low prices helped by an innovative inventory management system, Walmart says it "serves customers and members more than 200 million times per week" at more than 8,424 retail units under 53 different banners in 15 countries.

The US-based company operates in Mexico as Walmex, owns the giant Asda in the UK, and runs Seiyu in Japan. In countries such as Argentina, Brazil, Canada and Puerto Rico, the company has wholly-owned operations. Walmart has it presence on the subcontinent with a retail chain called Best Price in India.