As a result of its financial loss last year, Shanghai-based Hualian Supermarket has decided to alter its business strategy and expand only within the Yangtze River Delta Region instead of the whole country.
So far, Hualian has reduced its stores in Beijing from 40 to 18.
A representative from Hualian has told local media that with Beijing's supermarket sector becoming more saturated, Hualian has fewer advantages in the region. Because it is a Shanghai brand, it lacks brand recognition, efficient supply routes and talented personnel. This is the main reason why the company has closed some stores in Beijing.
Despite its business deficit, Hualian's store numbers increased rapidly last year and reached 1937 in total, spreading across Shanghai, Beijing, Jiangsu, Zhejiang and Anhui.
Hualian entered the Beijing market five years ago, but with fierce market competition, its business in the city has been shrinking in recent years.