The influx of foreign players such as Walmart and Carrefour has weakened Chinese retailers’ sales – however locals are rebounding.

“Ten years ago many people cried, ‘the wolf is coming’, thinking international retailing giants would dominate the China market with their strong capital and advanced management experience.But now we find that the wolf is not that scary,” said Pei Liang, secretary general, China Chain Store and Franchise Association.

Fujian-based New Hua Du Supercentre will acquire six stores from South Korea’s E-Marts marking the first time a mainland retailer will buy a foreign supermarket chain in China.

In 1995, China allowed foreign investors to joint venture with mainland companies. Since then, Carrefour has opened more than 180 stores in China and Walmart has 189.

Liang says China’s hypermarket sector is dominated by foreign companies, but convenience stores and mid-sized supermarkets are eclipsed by local retailers.

“Local retailers are fast learners. But more importantly, they have developed their advantages by opening stores in residential communities, being flexible to meet customers’ demands, and tapping into multiple businesses,” Liang said.

GB