Spar International plans to become one of the leading retailers in China, according to the company’s managing director, who says Spar will triple its store numbers in China “in the next few years”.
Dr Gordon Campbell made the announcement yesterday at the World Retail Congress in Barcelona, reported Just Food.
He said establishing distribution centres in key Chinese provinces would give Spar the footing it needed to become one of China’s largest retailers.
“This is a hugely important development for Spar,” said Dr Campbell. “This will enable us to grow almost geometrically in the years ahead.”
The distribution centres will be set up in Shandong and Guangdong, among others, to support stores in cities within those provinces.
“This may sound like a strange vision but our vision is that we will operate this in many provinces in China, with one main partner and many minor partners - some with even single stores and some with multiple stores,” Dr Campbell said.
“Then we will become among the largest retailers - if not the largest - retailer in China.”
Spar has opened 88 outlets in China after entering the market in 2004. That puts the Dutch retailer significantly behind other foreign retailers like Carrefour or Wal-Mart, but Dr Campbell says there is plenty of room left in China.
“The role of the large, international retailers in China is not that significant at this point. Market shares are very low.”
Spar’s current strategy of focusing on tier-two cities in central China is paying off, according to Dr Campbell: “There are tremendous business opportunities there and our system will enable us to go inland and into western China, which we wish to do.”
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