Lianhua Supermarket Holdings 2009: A Company Profile

Access Asia’s Company Profile series of reports are meant to provide independent analysis on Chinese companies either in the news, or on the M&A radar. All company profiles contain contact details, company background and history, key activities in China, a SWOT analysis and key financial figures. We also include any key company events that have made the news, new product releases and branding activity.

As with other leading supermarket groups, Lianhua is shifting emphasis towards hypermarket and superstore outlets, and the company obtained nearly 60% of its revenue from hypermarkets in 2008, thanks to the opening of more hypermarkets and the increasing popularity of this store format among shoppers.

Lianhua is beginning to spread its regional interests more outside of its Shanghai base market, especially into neighbouring provinces such as Jiangsu and Zhejiang, but is also opening its rapidly expanding chain of hypermarkets across a further geographical range.

Strong same store sales growth is helping to sustain Lianhua’s place as one of the leading domestic supermarket chains in China. Likewise, the company is also at the forefront of development in the emerging private label sector, already having started its private label business in 1996. Lianhua has turned to Daymon Worldwide, a US-based private brand broker, to help it develop its private label business.

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