China Retail Industry Report (Merger& Reorganization), 2006

In 2005, China retail industry continued to maintain a steady and rapid growth and the total retail sales of social consumer goods reached RMB 6.7177 trillion, increased by 12.9% over 2004; it is forecasted that the retail market capacity could achieve RMB7.6 trillion for 2006; in 2007-2010, the average annual growth rate of China retail industry is expected to up to 14% and the retail market capacity will be expected to reach RMB 8.6 trillion in 2007 and RMB 12.81 trillion in 2010.

As for the regional distribution of China retail industry, the most developed area locate in east China, which shares over 1/3 of the whole retail market in social consumer goods retail; the market shares in north China, south China and central China all exceed over 10%; but the west China lags far behind, accounting for less than 5%.

M & A cases frequently happen in China retail industry since 2006 and M & A has become the major measure for strategic investment in retail industry. It is forecasted that the M & A will keep its high frequency in the next 3-5 years, so great changes will take place in domestic retail market pattern.

Along with the opening-up of domestic retail market, foreign-owned retail companies will take action for cross-region M & A in order to capture more market shares and then control the regional markets. And moreover, they will achieve their expansions via M & A instead of joint venture.

As far as regional retail market is concerned, the retail business resources in second-tire and third-tire cities of China will become the target of merger and acquisition in the coming days. But the chain retail companies or department stores in developed areas like Beijing, Shanghai and Nanjing have difficulties in realizing cross-region development as well as net profit growth, therefore, they might be merged or acquired by foreign or private capitals.

Starting with the status quo of China retail industry, this report gives an in-depth analysis on the motives, characteristics, trend and problems of merger and reorganization in Chinese retail industry. It also analyzes the development status and merger trend of key home-and foreign-funded retail enterprises in Chinese retail market and elaborates the regional merger and reorganization. Finally, it points out the risks existing in merger and reorganization of retail market.

Selected Chats

• Statistics and forecast of total retail sales in China, 2000-2010
• Regional distribution of prime operating revenues of Bailian, 2005
• Regional distribution of prime operating revenues of Bailian, 2006 H1
• Regional distribution of retail sales of commodities, 2005
• Regional distribution of prime operating revenues of Dashang, 2006 H1
• Statistics of amount of GOME outlets, 2003-2006H1
• Regional distribution of GOME outlets, 2005-2006H1
• Regional distribution of GOME revenues, 2004-2005
• Statistics of operating costs of GOME, 2005-2006H1
• Regional distribution of GOME revenues, 2005-2006H1
• Regional distribution of main business of Wangfujing Department Store, 2006H1
• Investor relations of Wu-Mart
• Regional distribution of prime operating revenues of Suning Appliance, 2005
• Regional distribution of prime operating revenues of Suning Appliance, 2006H1
• Regional distribution of prime operating revenues of Hualian Supermarket, 2005
• Regional distribution of prime operating revenues of Hualian Supermarket, 2006H1
• Development status of Lianhua outlets, 2003-2005
• Sales revenue growth of Wal-Mart in China and forecast, 2002-2006
• Development of Wal-Mart outlets in China and forecast, 2002-2006
• Development of sales revenue of Carrefour in China and forecast, 2002-2006
• Development of Carrefour outlets in China and forecast, 2002-2006
• Development of sales revenue of Metro in China and forecast, 2002-2006
• Development of Metro outlets in China and Forecast, 2002-2006
• Development of sales revenue of Vanguard in China and Forecast, 2002-2006
• Development of Vanguard outlets in China and Forecast, 2002-2006
• Development of sales revenue of Suguo in China and Forecast, 2002-2006
• Development of Suguo outlets in China and Forecast, 2002-2006
• Regional distribution of Suguo outlets, 2005
• Development of sales revenue of Trust-Mart in China and Forecast, 2002-2006
• Development of sales revenue of Parkson in China and forecast, 2002-2006
• Development of Parkson outlets and forecast, 2002-2006
• Statistics of Chinese chain retail enterprises by region, 2005
• Statistics of Chinese chain retail networks by region, 2005
• Statistics of China chain retail enterprises by retail formats, 2005
• Statistics of Chinese chain retail networks by retail formats, 2005
• Total retail sales of social consumer goods in North China, 2000-2005
• Total retail sales of social consumer goods in East China, 2000-2005
• Total retail sales of social consumer goods in Central China, 2000-2005
• Total retail sales of social consumer goods in South China, 2000-2005
• Total retail sales of social consumer goods in Northeast, 2000-2005
• Total retail sales of social consumer goods in Southwest, 2000-2005
• Total retail sales of social consumer goods in Northwest, 2000-2005
• Process of China retail industry opening to foreign capitals
• Monthly statistics of social consumer goods retail, 2004-2005
• Monthly statistics of social consumer goods retail, Jan 2006-Aug 2006
• Top 100 chain enterprises in China, 2005
• Operation status of top 30 chain enterprises in China, 2006H1
• Overview of major foreign chain retail enterprises, 2005
• Status on close-down supermarkets, 2005
• Overview of China major convenience store enterprises, 2005
• Merger and reorganization cases of foreign retail enterprises in China, 2005-2006
• Main business structure of Bailian by sector, 2005
• Main business of Bailian by region, 2005
• Operation status of Bailian's major holding companies and joint-stock companies, 2005
• Main business of Bailian by sector, 2006H1
• Main business of Bailian by region, 2006H1
• Main business of Dashang by sector, 2005
• Retail business of Dashang by region, 2005
• Retail revenues and cost of Dashang, 2006H1
• Main business of Dashang by region, 2006H1
• Prime operating revenues and cost of Sanlian Commerce, 2005
• Prime operating revenues and cost of Sanlian Commerce, 2006H1
• Operation status of Wangfujing Department Store's major holding companies and joint-venture companies, 2005
• Main business of Wangfujing Department Store by sector, 2006H1
• Prime operating revenues of Wangfujing Department Store by region, 2006H1
• Statistics of Wumart outlets, 2005
• Sales revenue and profits of Wumart, 2005
• Sales revenue and gross profit of Wumart by retail format, 2005
• Sales revenue and profits of Wumart, 2006H1
• Main business of Suning Appliance by region, 2005
• Retail business of Suning Appliance, 2006H1
• Main business of Suning Appliance by region, 2006H1
• Main business of Hualian Supermarket by sector, 2005
• Main business of Hualian Supermarket by region, 2005
• Main business of Hualian Supermarket by sector, 2006H1
• Main business of Hualian Supermarket by region, 2006H1
• Regional distribution of Lianhua Supermarket's outlets, 2005
• Statistics of outlets of Lianhua Supermarket, 2006H1
• Sales revenue and gross profit of Lianhua Supermarket, 2001-2005
• Sales revenue and profits of Lianhua Supermarket by branch, 2006H1
• Retail enterprises listed in Global top 500 in 2006
• Overview of major foreign-owned retail enterprises, 2005
• Regional distribution of Wal-Mart outlets in China, 2005
• Statistics of Carrefour outlets in mainland China in October 2006
• Regional distribution of Lotus outlets in China, 2006H1
• Regional distribution of Metro outlets in China, 2006H1
• Regional distribution of Trust-Mart outlets in China, 2006H1
• Regional distribution of Parkson outlets, 2005
• Assessment on regional markets of parts of retail enterprises, 2005
• Regional distribution of chain retail enterprises and networks in north China, 2005
• Total retail sales of social consumer goods in major cities of north China, 2000-2005
• Regional distribution of chain retail enterprises and networks in east China, 2005
• Distribution of chain retail enterprises and networks in east China by retail format, 2005
• Total retail sales of social consumer goods in major cities of east China, 2000-2005
• Regional distribution of chain retail enterprises and networks in central China, 2005
• Total retail sales of social consumer goods in major cities of central China, 2000-2005
• Regional distribution of chain retail enterprises and networks in south China, 2005
• Total retail sales of social consumer goods in major cities of south China, 2000-2005
• Situation of parts of retail enterprises in south China, 2005
• Total retail sales of social consumer goods in major cities of northeast, 2000-2005
• Status quo of parts of retail enterprises in northeast, 2005
• Regional distribution of chain retail enterprises and networks in southwest, 2005
• Total retail sales of social consumer goods in major cities of southwest, 2000-2005
• Status quo of parts of retail enterprises in south west, 2005
• Regional distribution of chain retail enterprises and networks in northwest, 2005
• Total retail sales of social consumer goods in major cities of northwest, 2000-2005