E-commerce in China is one area we touch on this month, and it continues to be an area of continuing explosive growth. However much dairy product distribution relies on traditional bricks and mortar infrastructures so it’s notable that a number of key grocery retailers’ expansion is also proceeding apace.
A key instance is that of German retail giant Metro AG – especially known for its cash and carry supermarkets in China. It announced the opening of its 64th Chinese supermarket, at a site in Qingdao, Shandong province: a 10,000 m2 store which will include 17,000+ kinds of food products. Last year it doubled its expansion rate in China, opening 12 stores when other foreign retailers such as the struggling Tesco were cutting their presence in the country. Metro new openings this year will be at least 13 stores, and it expects its sales in China to double to €3.78 billion. China’s own leading player Wumart opened 51 directly owned stores last year, 19 superstores and 32 mini-marts, taking it to 538 stores in total.
So whilst western foodservice chains have experienced mixed fortunes recently – see Yum! China’s March figures showing growth at Pizza Hut being offset by the chicken-sector problems at KFC – it seems realistic to expect that retail growth will continue to underpin the ongoing dairy sector recovery.
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