Foreign retail giants' sales surge 20pc


Jianguo Jiang


February 8, 2005


Carrefour and Wal-Mart Stores, two of the biggest overseas retailers operating in China, each boosted sales more than 20 percent last year as they continue to expand in one of the world's fastest-growing retail markets.

Carrefour, Europe's biggest retailer and the No 1 foreign retailer in China by sales, had a 20.9 percent sales gain from a year earlier to 16.2 billion yuan (HK$15.27 billion) after the firm increased outlets to 62 from 41, the Commerce Ministry said.

Sales at Wal-Mart, the world's biggest retailer, gained 28.8 percent to 7.6 billion yuan, with store numbers rising to 43 from 33. Wal-Mart ranks sixth of eight foreign retailers operating in China, the ministry's Web site said.

Overseas retailers have been expanding in China as the nation opens a domestic market of 1.3 billion people to foreign competition. Per capita disposable incomes in urban areas rose 7.7 percent to 9,422 yuan last year and the country's retail sales rose 13 percent to 5.4 trillion yuan.

Wal-Mart plans to open 15 new stores in China this year after the government removed restrictions on foreign retailers to meet World Trade Organization pledges, the company said.

Carrefour ranked fifth among China's top 30 retailers last year, and Wal-Mart was No 20, the ministry said. The top 30 chains' combined sales rose 33 percent to 384.6 billion yuan last year, it said.

Metro Group's China sales gained 14.3 percent to 6.4 billion yuan last year, as the German retailer increased its store numbers to 23 from 18.

Two of the ``overseas'' retailers on the ministry list are owned by Hong Kong-traded China Resources Enterprise. Sales of Suguo Supermarket rose 44.8 percent to 13.9 billion yuan, and sales at China Vanguard Super Department were up 6.8 percent to 11 billion yuan. Suguo increased its stores to 1,345 from 1,162, while Vanguard increased its stores to 476 from 467.

Yum! Brands, operator of the Taco Bell, Pizza Hut and KFC restaurant chains, had a 26.6 percent sales gain to 11.9 billion yuan last year after increasing outlets in China to 1,400 from 1,100, the ministry said. China is one of Louisville, Kentucky-based Yum's most profitable markets.BLOOMBERG

 


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