Retailing, Franchising, and Consumerism Business Intelligence in China

350 New Retail Outlets On Lianhua Supermarket's Agenda For China This Year

Chinese supermarket operator Lianhua has announced its annual results for 2011, stating that the total number of its outlets reached 5,150 by the end of last year, and it plans to open 350 additional stores in 2012.

The retailer said in its report that its operating revenue in 2011 was CNY27.52 billion, a year-on-year increase of 6.23%; its gross margin was about 14.38%, a year-on-year increase of 0.43%; and its profit was over CNY800 million, a year-on-year increase of 6.99%.

The company revealed that it will continue expansion in 2012 by focusing on the development of convenience stores. During last year, Lianhua opened 390 new outlets, of which 204 were convenience stores, accounting for over 50%.

In Beijing, Lianhua has been focusing on rapid development and continues to increase its market share in the convenience store sector. The report said that for the year 2012, the company will further accelerate its development in cities like Beijing and Hangzhou, including opening 180 new convenience stores in these cities.

According to statistics provided by Lianhua, the operating revenue of its convenience store business was CNY1.734 billion in 2011, accounting for 6.3% of the total revenue of the company. Meanwhile, the growth of individual stores was about 6.7%, which was the highest comparing with the company's hypermarket and supermarket businesses.

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