Retailing, Franchising, and Consumerism Business Intelligence in China

Suguo Opens First Franchised Howdy CVS In Nanjing

Suguo Supermarket Company has welcomed the grand opening of its first franchised Howdy CVS in Nanjing, which also symbolizes an end to Suguo's history of operating only direct-run stores in Nanjing.

Howdy CVS is the convenience store brand for Suguo. Franchisees who obtain the license to open a Howdy CVS need to pay over RMB200,000, which includes the franchising fee and a deposit for credited assets. They must also prepare an area of 40 to 100 sqm for the store opening.

Under the franchise agreement, Suguo will be responsible for providing the trademark and image of Howdy CVS and other intangible assets such as management technology. Suguo will also take charge of training the staff and the delivery of goods.

Each convenience store aims to serve 5000 to 6000 people, which means that the downtown area of Nanjing can potentially accommodate about 600 convenience stores. However, there are only 300 convenience stores in Nanjing, thus the potential market there is huge.

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