Staff from Shanghai Hualian Supermarket Company's Beijing head office have told local media that the Shanghai-based supermarket will completely withdraw its supermarket business from Beijing due to losses.
An unnamed representative from the Beijing Hualian Liupukang Store, which is now busy checking the inventory, told local media that all Hualian Supermarkets in Beijing will be closed by next month.
In responding to the shutdown of its Beijing stores, Shi Haogang, assistant manager of the Shanghai Hualian Head Office, says that the Beijing branch is adjusting its operation. Li Song Quan, general manager of Hualian Beijing Branch holds similar opinions and says it is up to the head office in Shanghai to make the final decision as to whether to close the stores in Beijing. However, he says that Hualian will be responsible to its suppliers and should be able to pay them.
Hualian has over a dozen stores in Beijing. But since it entered the Beijing market in 2001, it has been suffering a loss for five consecutive years.