Wal-Mart shutters Chongqing stores due to pork scandal

Wal-Mart Stores (WMT.NYSE) has been ordered to temporarily close 12 stores in the southwestern city of Chongqing following an investigation into the fraudulent labeling of ordinary pork as organic pork, the Wall Street Journal reported. Authorities in Chongqing ordered Wal-Mart to close ten stores and two affiliates for 15 days on Sunday, and may order the retailer to pay about US$575,000 in fines for allegedly selling tons of mislabeled pork over nearly two years, according to a statement on the city government’s website. Wal-Mart apologized to shoppers and said it was cooperating with authorities by temporarily closing seven stores in Chongqing since Sunday. The US retail giant has been punished 21 times by Chongqing officials for alleged violations including false advertising and mislabeling since it entered the city in 2006. Wal-Mart is the second-largest retailer by sales in China, racking up US$7.5 billion in sales from 328 stores in country in 2010.