Supermarkets In China Lose Market Share To Online Retailers

Supermarkets in China are facing growing competition from online retailers for their business, according to a report by the Communist Party-managed “Beijing Youth Daily” newspaper. According to the report, e-commerce has changed Chinese consumers’ buying behavior, adversely affecting traditional retailers’ business, with at least 80 percent of supermarkets and other retailers reporting higher management costs and declining gross margins. Since 2012, foreign-owned retailers, such as Wal-Mart, Carrefour, and Tesco, have seen sales slowdown, forcing them to close some of their stores. These companies have focused on selling refrigerated and frozen products, which attract customers and offer higher gross margins; however, online retailers are also seeking to expand their presence in this segment.

"Supermarkets fighting losing battle with China's e-commerce", WantChinaTimes.com, March 18, 2014

Walmart Closes Store In China

Walmart Stores closed a store in Chongqing, China, due to poor sales. With poor site selection being blamed for the store’s anemic turnover, the store closure marks the first for Walmart in the city, which the retailer entered 10 years ago. In November and December 2013, Walmart closed 10 stores across the country, due to poor sales and growing competition from online retailers. China’s online retail market accounted for less than 10 percent of total sales of consumer goods in 2013; however, the market posted 1.89 billion yuan worth in transactions during the year. Also, Walmart is facing serious competition from Chinese retailers.

"Walmart closes store in China", Business Standard, March 05, 2014

Wal-Mart Sets Renovation Plans For China Stores

After opening stores in 28 shopping centers and two Sam’s Club stores in China in 2013, Wal-Mart plans to upgrade 55 existing retail stores in the country in 2014. In Anhui, a market the company entered in 2005 and where it operates 17 stores at present, Wal-Mart plans to invest 18 million yuan in renovating the nine-year-old Shuguang Hefei store. Also, Wal-Mart’s corporate social responsibility efforts in the region have helped it win many government honors and become the internship partner for both the West Anhui Institute and the Science and Technology of Defense Institute.

"Wal-Mart invests in renovation of Chinese stores", FreshPlaza, March 25, 2014

Unilever Buys Majority Stake In Chinese Water Purification Firm

Unilever says it has acquired a majority interest in Qinyuan, a high-tech Chinese water purification company founded in 1998. Unilever says the purchase is its biggest in China in 10 years. Qinyuan is one of the big players in China’s rapidly-expanding water purification market (20 percent annual growth since 2011). The company’s 2013 sales were 140 million euros ($194 million). With 2,500 employees, Qinyuan makes water purifiers, drinking water equipment and water treating membranes. A Unilever spokesman said the deal would double its water purification business.

"Unilever buys majority share in China water business", Yahoo! News, March 09, 2014