British retailer Tesco is shutting down its 15 year old store in Shanghai’s Changning district.

It would be the sixth store in China Tesco has closed since last year.

Reports say that Tesco, along with other foreign retailers, are closing stores because they are finding it too tough competing with local retailers like Sun Art Retail Group and China Resources Enterprise.

Foreign peer Walmart closed three stores in April and has not ruled out shuttering more in the future.

“Because of the relatively small number of outlets they have, especially in the third- and fourth-tier cities, large foreign retailers are not flexible and cost-effective enough in fields such as transporting and promoting their products,” said Hong Tao, a trade and economics professor at Beijing Technology and Business University.

Tao says foreign retailers are facing difficulties in offering customised services and products, which dissatisfy customers.

Bricks-and-mortar grocery stores are also under threat from the increasing adoption of online shopping.

“China’s young consumers are turning to online stores such as taobao.com and jd.com for the convenience and affordable prices,” said Wang Xianqing, an expert on circulation economics at Guangdong University of Business Studies.