Hong Kong-based supermarket chain ParknShop is nearing completion of its exit from Shanghai, citing operational problems, stiff competition and high rents.

ParknShop closed its outlet in Westgate Mall in West Nanjing Rd, one of its two remaining stores in Shanghai, which operated for 15 years. The last store in Changning district is scheduled to close on May 21.

ParknShop opened more than 20 stores in Shanghai since it began operation in the city in 1994.

“With only two shops in Shanghai, ParknShop could not compete with other retail giants in terms of procurement and logistics chain,” said Yan Qiang, an analyst at Beijing-based Adfaith Management Consulting. “It calls for five to 10 shops for the supermarket chain to achieve the economy of scale. Besides, being close to giants like Carrefour, which is quite popular in Shanghai, creates serious split flow.”

Meanwhile, ParknShop remains bullish in Guangzhou and in its home base Hong Kong where it has more than 200 stores.

ParknShop was established in 1973 in Stanley, Hong Kong. It sells Chinese products and imported merchandise. ParknShop is a member of the Watson Group, a wholly owned subsidiary of Hutchison Whampoa Limited.

GB