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

Nine foreign hypermarket operators including Wal-Mart, Carrefour and Metro have a total 533 outlets in the nation, with annual sales of 230 million yuan at each. The nine retailers opened 91 new outlets in China last year.

Chain retailers are also seeing more industry consolidation through State-owned asset restructuring and mergers and acquisitions.

Last year, the top 10 retailers notched up combined sales of 502.9 billion yuan - over half that of the total for the top 100. But that figure was 42 percent in 2003, the report said.

Retailers on the top 100 list posted average sales of 10.02 billion yuan in 2007, up from 8.55 billion yuan in 2005.

New retail behemoths emerged after the State-owned assets reshuffle. Shanghai Bailian Group is one of them - a commercial aircraft carrier composed of four large State-owned companies.

Retailers are also consolidating their positions through more M&As. Gome acquired its domestic rival Dahong, Wal-Mart took a stake in Trust-Mart, Beijing Jingkelong merged with Beijing Shoulian Group and Vangaurd bought The Home World.

Local and foreign retailers are developing fast and trying to be more competitive, the report said.

New retail models are also emerging to cater to changing consumer tastes. They include premier supermarkets, regional wholesale centers, fresh food convenience stores and online stores that deliver.

Meanwhile, some retailers such as Wal-Mart, Carrefour and Suning have set up their own food supply networks, direct procurement centers and stock management systems to improve food safety and quality and cut costs.


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