Wal-Mart is accelerating its store openings in China -- it plans to open at least 18 this year, six more than Carrefour -- and analysts are reluctant to bet against the Bentonville, Ark.-based discount retailer given its enormous resources. Its global sales last year reached US$285 billion, triple that of Carrefour's. Wal-Mart bought US$18 billion in goods from Chinese manufacturers last year.

But as a retailer in China, Wal-Mart is a small fish. Its strategy of offering tian tian ping jia, or "everyday low prices," hasn't had a big effect on Chinese mom-and-pop shops that are used to cutthroat pricing. Wal-Mart has been unable to replicate its super-efficient logistics system in China largely because it lacks scale.

Carrefour has more international experience than Wal-Mart. The French company operates in 29 countries, about double the number for Wal-Mart. Both chains have struggled in Asia, however, pulling out of countries such as South Korea. And despite their push in China, Chinese retailers dominate.

The more stores it can open, the better chance Wal-Mart can leverage its mass scale to squeeze prices lower and drive efficiencies in purchasing, inventory management and distribution.

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