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Top retailers ring up more sales and growth
By Liu Jie (China Daily)
Updated: 2008-04-04 09:25

Local electrical appliance chain Gome notched up the highest total sales of 102.35 billion yuan and the most stores at 1,020. Shanghai-based Bailian, Gome's arch-rival Suning, State-owned Vanguard and Dalian-based Dashang followed, with sales of 87.14 billion yuan, 85.47 billion yuan, 50.29 billion yuan and 50.22 billion yuan respectively for 2007.

"The top five are the same as last year's ranking, which indicates Chinese chain retail giants are stable and making healthy progress," the report said.

The industry is seeing strong progress, with market leaders developing quickly, overseas brands doing well, plenty of mergers and acquisitions and more competition, the report said.

The association put together its first "top 100" in 2003. Since then, the top 100 chain retailers have seen annual growth of 45 percent, 39 percent, 42 percent, 25 percent and 21 percent. But growth has slowed in the last two years as the market has become more sophisticated and competitive, the report said.

The electrical appliance segment - including digital and telecommunications - stood out as particularly robust, with major players Gome, Suning, Best Buy's joint venture Five-Star, high-end computer retailer PCMall and mobile phone shop Dixintong all ranked in the top 30.

The five retailers' average annual growth rate for sales was 28 percent and for outlets 34 percent - noticeably higher than retailers in other sectors.

Chain department stores also performed well, with 12 on the top 100 list, annual average sales growth of 23 percent and outlet growth of 5 percent.

Chain retailers are also cashing in on the rural market. Beijing Xinhezuo Group, a State-owned retailer set up in 2003 that specializes in county and village operations, has streaked ahead since it entered the rural market.

This year is Beijing Xinhezuo's first appearance on the top 100 list. Its outlets increased 145 percent from 21,210 in 2006 to last year's 52,000.

Overseas retailers continued to expand their presence in China last year. Fifteen key foreign chains generated 182.5 billion yuan of sales in the nation last year through their 3,956 outlets.


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