Shanghai creates retail giant
10/4/2003 17:42
Shanghai has restructured the nation's four leading retailers into the
largest retailer nationwide to meet fierce competition from foreign
counterparts, the Jiefang Daily reported today.
The merger will combine
the Shanghai No. 1 Department Store Group, Shanghai Hualian Group Corporation,
Shanghai Friendship Group and Shanghai Material Trading Group
Corporation.
A holding company formed by the merger - reportedly to be
called the Shanghai Bailian Group - will be the largest retail group in
China.
Shanghai No. 1 Department Store Group, Shanghai Hualian Group
Corporation and Shanghai Friendship Group are the three largest state-owned
commercial groups in Shanghai, with total assets of more than 10 billion yuan
(US$1.2 billion).
Shanghai Material Trading Group Corporation,
established in 1995, has 17 affiliates and holding companies, three public
companies and 200 sharing companies, with annual sales volume of 20 billion
yuan, making it one of the top 100 material trading enterprises in
China.
Assets of the four merging companies could be reorganized into
hypermarket, supermarket, convenience store, and department store units, said an
industry analyst.
The merger will prevent local players from competing
with each other and help them deal with mounting pressure from international
giants such as France's Carrefour S.A. and US-based Wal-Mart Stores Inc., the
analyst added.
Wendy Zhang/ Shanghai Daily news
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