Walmart reduces goods sourcing from Li & Fung

Hong Kong

WALMART Stores Inc, the world's biggest retailer, pulled some goods sourcing business from Li & Fung Ltd, raising concerns that the Hong Kong company may see other customers follow suit.

"We have made a decision to transfer certain sourcing functions for Walmart in-house," Walmart said. Li & Fung's Direct Sourcing Group Pte (DSG) will continue to supply Sam's Club goods, the retailer said.

Li & Fung set up Direct Sourcing Group in 2010 to supply Walmart, which allowed the Hong Kong-based company to act as a buying agent for US$2 billion of goods in the first year. Profit for Li & Fung, which provides retailers with sourcing and distribution throug…