Grocer closes last 2 stores in Shanghai
Updated: 2012-05-14 15:31
By Tang Zhihao in Shanghai (chinadaily.com.cn)
PARKnSHOP, one of the largest grocery retailers based in Hong Kong, will close its two remaining stores in Shanghai in May.
The outlet in West Gate Mall on West Nanjing Rd was closed on May 13 and the premium supermarket store which started operations in Jan 2011 in the Gubei of Changning district is reported to be closed around May 21.
The company, which is a wholly owned subsidiary of Hutchison Whampoa Ltd, said the completion of lease contracts was the main reason for the stores' closures and new outlets will be opened in Shanghai if the company can find ideal locations. PARKnSHOP denied it would quit the Shanghai market.
Experts said the main reason for the store closures was the company's failure in supply-chain management. Lack of a local management team also played a role.
PARKnSHOP entered the Chinese market in 1984. It was the first retailer with a foreign background to seek expansion opportunities in China. However, its expansion in Shanghai did not go smoothly amid increasing demand in the local market.
PARKnSHOP closed most stores in Shanghai in 2000. The store in West Gate Mall was the only one remaining in Shanghai at that time. The company announced new expansion plans in 2006 and 2011 in Shanghai and has tried different store formats, including high-end stores.