KPMG Industry Updates - Issue 3, April 2013
China's economic slowdown is weighing on international retailers' business in the country. Global retailing giants Walmart, Carrefour and Tesco have all experienced brisk growth in China in the past few years, but they now find that their mode of growth which largely relies on scale expansion is no longer sustainable. Foreign retailers have to readjust their development strategies to improve the quality of growth and sustain their China presence in the long run. In doing so, they probably need to take a variety of measures, including improving the internal management, enhancing the same-store sales, optimizing the network of stores, redefining brand positioning and developing new retail forms. China is developing into a more consumption-oriented market, where consumers are increasingly attracted to high-quality products and services. Foreign retailers – which have stronger brands, better management skills and greater international market resources – are expected to be in a positive competitive position going forward.