Carrefour extends China reach
Partnership with Shanghai Lianhua
March 28 2003
Carrefour has formed a partnership with Chinese supermarket chain Shanghai Lianhua to run discount stores in Shanghai.
The Chinese state press reported that the venture will see 300 stores open in residential areas under the Dia brand. The French supermarket business will own 55 per cent of the venture through its Promodes subsidiary, while Shanghai Lianhua, China’s largest supermarket chain, will own the other 45 per cent.
While Shanghai is China’s largest and richest city, the stores will aim to appeal to its low income urban population. Each will stock around 1,500 lines at prices between 10 per cent to 15 per cent lower than in hypermarkets.
Carrefour is one of a number of western retailers which is expanding in China. State rules require foreign investors to operate partnerships with local companies.