Latest News:  
Beijing   Overcast/Light rain    28 / 22 ℃  City Forecast

English>>China Business

Tesco to shut down four stores in smaller cities

By Zhang Ye (Global Times)

13:24, August 24, 2012

Tesco, the world's third biggest supermarket chain, is planning to shut four supermarkets in China in a strategic adjustment, a move experts said reflects the sluggish performance of the retail market.

The retailer will close its two stores in Bengbu in East China's Anhui Province and Changshu in Jiangsu Province on August 31, one in Tieling in Northeast China's Liaoning Province on September 14 and another in Taizhou in Jiangsu Province on an undisclosed date, a PR executive from Tesco China, who declined to give her name, told the Global Times Thursday.

This move is part of a strategic adjustment in Tesco's sales network in China, she said.

But experts attributed the decision to the downturn in China's retail industry and the business mode of foreign retailers which is not suited to less developed cities.

The costs in the retail industry are expected to continue to rise in the next four years, given that the labor costs of stores increased 26 percent and rents jumped 10 percent in 2011, business news portal jrj.com said, citing an industry report on chain retail operation jointly issued by China Chain Store & Franchise Association and Deloitte & Touche on August 16.

Before opening stores in the less developed cities, foreign retailers should adapt their business mode according to the local conditions, Wang Xianqing, director of the Research Institute of Circulation Economy at Guangdong University of Business Studies, told the Global Times Thursday. "Otherwise, they could not compete with the local supermarkets which have already established a solid customer base."

【1】 【2】



News we recommend:
Prices fly for Angry Birds' merchandise Wine imports give Chinese firms a hangover Spirited into the world of e-commerce
E-shopping fuels domestic consumption China's firms bigger but not necessarily better China's beauty industry profits from a makeover
Taxing times for China's tax reformers  Experts divided on yuan’s future [Audio]Soccer in China Part III: The Business Side

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. An armored unit in training

  2. Ishigaki, an island's rise from China-Japan spat

  3. Amusement parks boost real estate market

  4. Trip to Hong Kong, China

  5. 24 Of The Hottest Body Paint

  6. How to marry a billionaire

Most Popular

Opinions

  1. Brand positioning through experience
  2. Visits highlight Cairo foreign policy change
  3. New Silk Road has potential for global significance
  4. Egypt to pursue a more active diplomatic approach
  5. Commentary: Moderate growth rate
  6. The not so curious case of single women
  7. Editorial: Solution to trade war
  8. 'Made in SE Asia' doesn't doom China
  9. Once warm Sino-Soviet relationship can be revived
  10. Editorial:Corporate competitiveness

What's happening in China

Women sexually 'assaulted' during water festival

  1. CCTV slammed for broadcast of hurdler’s stumble
  2. Resettlement plan for 74,000 Beijing residents
  3. Courts to auction seized goods online
  4. Tombs bear secrets of ancient Tibetan kingdom
  5. Meteorologists debunk China's "Four Furnaces"

China Features

  1. Tips for 'Stopping the Heat' [Special]
  2. Hometown of 'The Cowherd and the Weaving Girl'
  3. Japan arrests Chinese over Diaoyu Islands issue
  4. Opportunities lie ahead for emerging countries
  5. Mercedes-Benz E-class owners to file lawsuit

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai