Abstract
Purpose – The purpose of this paper is to investigate the development of the grocery retail market in China. International retailers have been in China for more than ten years, during which period a series of profound changes has occurred in the Chinese retail sector. International retailers introduced advanced retail techniques and managerial approaches; domestic retailers grew more sophisticated in their supply chain management. Foreign‐based retailers in China can compete in hypermarket and supercentre formats because they offer higher‐quality products and achieve larger economies of scale. Domestic retailers compete by operating smaller formats and maintaining good relationships with governments and local communities. However, formerly state‐owned domestic retailers appear less competitive because they lack funds and adopt poor management styles. This study aims to make recommendations about future developments by domestic and foreign grocery retailers.Design/methodology/approach – The paper takes the...
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