According to statistics published by the Commercial Reform and Development Department under the Ministry of Commerce and the China Chain Store and Franchise Association, sales revenue of China's top 100 chain stores totalled Rmb855.2 billion in 2006, up 25% year-on-year and exceeding the 13.7% rise in China's total consumer goods sales. There were 69,100 chain store outlets in the country, employing 2.04 million people, up 31% year-on-year.
An analysis of China's top 100 chain stores in 2006 shows the following characteristics:
Higher share in total sales - The total sales of the top 100 stores recorded an average annual growth of over 30% in recent years and their share in the total retail sales of consumer goods soared to 11.2% in 2006 from 6% in 2002. Of the top 100 stores, sales of the largest 10 reached Rmb407.3 billion in 2006, accounting for 48% of the total sales of the top 100.
Foreign retailers fast expanding - Carrefour opened 33 new stores, Wal-Mart opened 15 new stores, and Metro opened six in 2006. Eleven foreign retailers, mainly operators of big supermarkets, opened over 100 new stores across the country. In addition to opening new stores in a quick pace, foreign companies also expanded their business by means of merger and acquisition.
Franchising growing rapidly - In 2006, among China's top 100 enterprises, 46 had embarked on franchise operation (41 in 2005). The total sales of franchised stores reached Rmb102 billion, an increase of 27% over 2005. The top 100 enterprises had a total of 41,000 franchised stores in 2006, double the 2005 figure.
Source: www.tdctrade.com

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