| Carrefour,
Europe's largest chain retailer, said it would open 20 to 25 hypermarkets
in China annually over the next few years to increase market penetration.
|
The
leading hypermarket operator, which has 112 outlets in China covering
Shanghai to Urumqi, said it was upbeat on the mainland economy,
particularly domestic consumption. The French firm forecasts sales
growth of at least 20 per cent this year.
|
| "We
opened more than 20 stores last year, so basically we are going
to keep this development momentum," said Carrefour China spokesman
Chen Bo. |
| Mr
Chen pointed out that the potential for hypermarkets on the mainland
remained strong with growing urbanisation, and Carrefour would reach
out to second, third and even fourth-tier cities. |
| Carrefour
is currently competing with the mainland arms of another global
players, such as the world's No. 1 retailer Wal-Mart Stores and
Tesco of Britain as well as local companies which have deep roots
and history in the country. |
Ma
Ruiguang of Flyhorses Consulting, a chain store consultation agent,
commented Carrefour's expansion plan was not surprising. "Its
sales network grows at between 10 per cent and 20 per cent, which
is not that aggressive in such a big market."
|
He
said Carrefour would face stiff competition from Wal-Mart soon after
the US firm further consolidated co-operation with Taiwanese-owned
Trust-Mart, which has 101 stores on the mainland. Wal-Mart has 104
stores on the mainland and a 35 per cent stake in Trust-Mart. "Carrefour's
penetration target in small locations will keep some regional players
at bay," Mr Ma said.
|
Hong
Kong-listed Times, Wumart Stores, Beijing Jingkelong and KPI are
other regional supermarket operators.
|
Kenneth
Fang Hung, the founder and chairman of Times, said the group has
expanded operation to third and fourth-tier cities such as Yancheng
and Huaian in Jiangsu and Fei Cheng in Shandong to avoid competition
with global retailers such as Wal-Mart and Carrefour.
|
Times
will allot 120 million yuan (US$17.6 million) to open six stores
in the second half of this year. The company has 45 hypermarkets
and 17 supermarkets in 48 small cities.
|
