Retail appetite robust in China's smaller cities, Kearney says

Smaller cities will spearhead the next phase of retail development in China and the sector will continue to provide huge growth opportunities for companies, global management consulting firm A. T. Kearney said in a report released on Monday.

"Urbanization, increasing disposable incomes, and the family-planning relaxation will fuel future retail growth in China," said the Global Retail Development Index, an annual study that ranks the top 30 developing countries in the world in terms of retail expansion potential.

Although China has more shopping malls, convenience stores, and online shoppers, hypermarkets and supermarkets, particularly foreign ones, than anyone else, the sector needs more steps to counter flattening revenue, the study said.