Carrefour shifts fo­cus away from hy­per­marts

China Daily (USA) - - BUSINESS - ByWANG ZHUOQIONG wangzhuo­qiong@ chi­nadaily.com.cn

French re­tailer Carrefour SA con­tin­ues to shift its fo­cus from its tra­di­tional hyper­mar­ket busi­ness to smaller con­ve­nience store for­mat — plan­ning to open 40 to 50 in Shang­hai this year.

The com­pany said it has seen en­cour­ag­ing sales trends in­Chi­nathankstofresh­prod­ucts. The trans­for­ma­tion of its busi­ness mod­els in the coun­try “has con­tin­ued and is well ad­vanced”, ac­cord­ing to the com­pany’s e-mail re­ply toChina Daily.

“Any new strat­egy devel­op­ment needs time to take ef­fect and we are happy to see its first re­sults,” said the re­tailer.

The group posted sales of 40.6 bil­lion eu­ros ($45.2 bil­lion) in the first half of 2016.

In­China, its to­tal sales, at 2.71 bil­lion eu­ros, were down 12.7 per­cent.

“In Asia, re­cur­ring op­er­at­ing in­come was af­fected by the trans­for­ma­tion of our model in China in a con­text marked by the rapid evo­lu­tion of con­sumer ex­pec­ta­tions,” ac­cord­ing to its half-year re­port.

“We wish to go ahead with hyper­mar­ket ex­pan­sion, es­pe­cially in the west­ern and cen­tral parts of China,” ac­cord­ing to the Carrefour re­play.

In ad­di­tion to the 14 Carrefour Easy stores, the firm will open an ad­di­tional 40 to 50 con­ve­nience stores in Shang­hai by end of 2016, it said.

Mean­while, the re­tailer is launching on­line op­er­a­tions to Chengdu, cap­i­tal of Sichuan prov­ince, af­ter it has al­ready done­soinBei­jin­gandShang­hai.

Carrefour has six mod­ern lo­gis­tics cen­ters in­Kun­shan of Jiangsu, Chengdu, Wuhan in Hubei, Bei­jing, Tian­jin and two cen­ters in Shenyang of Liaon­ing and Dong­guan in Guang­dong.

Ac­cord­ing to Kan­tar World­panel, the top 72 hy­per­mar­kets in­China as aw­hole­ex­pe­ri­enced sales drop of 0.2 per­cent in 2015 and Carrefour con­tin­ued to lose mar­ket shares over the past 12 months.

The hyper­mar­ket store clo­sures — es­ti­mated at 30 in the past three years— can­beat­tributed to the chang­ing con­sumers pur­chas­ing be­hav­iors, said Ja­son Yu, gen­eral man­ager of Kan­tarWorld­panel China.

PRO­VIDED TO CHINA DAILY

A Carrefour out­let in Shen­zhen, Guang­dong prov­ince.

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