Wal-Mart and Li and Fung have tied up

Wal-Mart Stores Inc signed a sourcing deal with giant merchandise provider Li & Fung Ltd with expectations the U.S. retailer could buy $2 billion worth of goods through the Hong Kong firm in the deal's first year. The alliance between the companies is expected to allow Wal-Mart to benefit by consolidating a part of its multibillion-dollar sourcing portfolio that supplies the goods it sells in stores. The core of the company's overall global sourcing strategy will be to continue increasing direct sourcing of its own brands.In October, Li & Fung bought nearly all the assets of U.S. children's wholesale apparel designer and marketer Wear Me Apparel LLC for up to $401.8 million, its biggest acquisition since 2001.