China's Suguo Supermarket To Add 200 New Stores In 2011

Ma Jialiang, chairman of the Jiangsu-based chain supermarket operator Suguo, said during an interview that the company will maintain its expansion speed through 2011 and plans to open 200 new sites over the coming year.

According to Ma, 60 out of the 200 new supermarkets will be located in Nanjing, capital of Jiangsu and the base camp for Suguo Supermarket. These new stores in Nanjing will mainly open in the surrounding areas of the city. At the same time, the company will develop new markets, including Jiangbei, Jiangning, Qixia, and Dachang, in 2011. In addition, it will launch community stores this year. With the development of these stores, the supermarket operator aims at annual sales of CNY42 billion in 2011.

Apart from the development of new markets, Suguo plans to copy its model in Nanjing stores to its existing markets. At present, the company's stores in Hefei, Maanshan, Yangzhou, Lianyungang, Huainan, and Lishui have already adopted the Nanjing model and attained good results. Over the coming year, Suguo will start overall implementation of its Nanjing model; establish a site structure with the three levels of city, county, and village; and form a competition method with large marts as its mainstay.

In addition, Suguo will set up logistic transfer stations in mature regions to create a powerful supply chain system along with its logistic center in Nanjing. This system is expected to support the company's site expansion in its existing markets and help it gain an advantageous position in regional markets.