The Beijing municipal government is striving to create a retail
chain network in residential communities this year, with foreign
convenience store operators clamouring for a chance to enter the
lucrative market.
Sources from the Beijing Commerce and Trade Commission revealed
about 400 convenience stores are due to open their doors by the end
of 2003 in urban Beijing.
Yang Xinjing, a commission official, told China Daily that
Seven-Eleven, the world's largest convenience store enterprise, a
Spanish discount store operator and France's Champion Convenience
Store chain have all been approved to open outlets in the capital's
residential communities.
"Propelled by Beijingers' improving housing conditions and the
rapid development of urban residential communities, the demand for
convenience stores has surged," said Yang.
Experts also pointed out that due to the increase in living
standards, people's requirements of commercial sectors have
diversified.
Hypermarket, supermarket, department stores and convenience stores
all should be developed to meet the various demands of the
citizens.
"Compared with Shanghai, Guangzhou and Shenzhen, the convenience
store sector is still at a primary stage of development in
Beijing," said Yang.
Until now, Super24, Shanghai Hualian and Quik outlets have emerged
in some residential communities within the city's Fourth Ring
Road.
"But it is far from enough to satisfy demand and the allocation is
not sound because of the lack of general design," said Yang.
The municipal government has formulated a detailed plan for the
layout of new convenience stores, most of which will be located in
newly established residential communities throughout the city.
(China Daily February 17, 2003)