Chinese Franchise Supermarkets

Supermarket Franchising, as a relatively new mode of retail business, is often regarded as one of the two hallmarks of the Modern Logistics Revolution . After more than ten years of development, franchise supermarkets have been a rising force in retail business in China. As a product of a highly‐developed commercial economy, franchise supermarkets mainly deals in foodstuffs and other daily necessities, featuring low cost, high turnover rate, low prices and diversified inventory. Propelled by the conveniences that come with open shelves and self‐service shopping, franchise supermarkets have been growing very rapidly and the rise of many franchise supermarket brands bears testimony to its growth potential and profitability. Meanwhile, in the backdrop of this boom, some franchise supermarkets are going bankrupt. This paper analyzes the current status of franchise supermarkets and some factors bearing on their core competencies, so as to close the competitiveness gap with international retail giants.