Business Intelligence on Retailing, Franchising, and Consumerism in China

SPAR To Establish Logistics Center In Dongguan

According to Tobias Wasmuht, marketing manager of Spar International and president of Spar China, the compay plans to cooperate with Jiarong Supermarket Co., Ltd., a local retail giant in Dongguan, to build a logistics center in Hongmei Town, Dongguan, Guangdong Province to supply goods for the retail industry across Guangzhou.

Wasmuht said that the logistics center will offer logistical, storage and distribution services covering all kinds of goods, including dry goods, fresh goods, and frozen goods. It will not only serve the Spar stores in Guangdong, but will also offer supplies to the entire retail industry of Guangdong. Planned and managed by Spar International's experts from Austria, Germany, Britain and South Africa, the logistics center is expected to be completed before 2010.

With 18 big marts in Dongguan, Jiarong Supermarket has recently opened a Spar mart with a business area of over 12,000 square meters in Mayong Town Dongguan.

On September 8, 2006, Jiarong Supermarket announced that the company would voluntarily promote the SPAR brand across Guangdong under the authorization of Spar International. Within less than two years, Jiarong Supermarket has opened 11 Spar stores, including seven directly-managed stores in Wanjiang, Nancheng, Gaobu, Zhongtang, Daojiao, Dalang, and Mayong and four franchise stores in Shilong, Yuanzhou, Qingxi, and Tangxia. In addition, its new Tianyating franchise store in Shihe Town is being readied for openingand is expected to open in September 2008.

Unlike other international retail giants such as Carrefour and Wal-Mart, Spar is a chain organization voluntarily formed by local retail brands. It does not own stores, but seeks the development of its members by sharing resources. Founded in 1932, SPAR manages over 15,000 supermarkets in 35 countries worldwide with annual revenue of over USD34 billion. Since its entry into the Chinese market in 2004, Spar has established partnerships with many Chinese local retail brands, including Shandong Jiajiayue Supermarket, Hubei Impasse China Commercial, Henan Star Commercial, and Dongguan Jiarong Supermarket.

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