From store to store in Shanghai (part 2.) – Lotus flower

We have visited Shanghai to attend the CIES conference which gave us an opportunity to take a look at retail trade in China. Lianhua (Lotus flower) is a 703 square meter neighbourhood supermarket in the Pudong district inhabited mainly by upper middle class people. Lianhua is the biggest Chinese retail chain with a total of 3,716 stores. 1,980 of these are in Shanghai. The supermarket we visited is open from 7 AM till 21.30 PM. The number of employees is only 29 and the store has 5 cash registers. Its total floor area is 1,050 square meters, with 703 square meters of store space. Food is sold on 400 square meters, with fresh products on 280 square meters. 70 per cent of total revenues comes from food sales. The regional director, Mr. Shi Min Hua tells us about the chain. Lianhua Supermarket Holding was founded in1991, becoming the first Chinese company in the Hong Kong stock exchange. They plan to open 400 new stores a year in the next three year period, though they “only” opened 106 last year. Convenience products are increasingly popular, as the pace of everyday life is accelerating. Most of the fruits and vegetables are sold wrapped in foil, while others are sprayed with water to keep them fresh. Many of the fruits and vegetables come peeled or sliced into small pieces, ready to eat, but prices are high. The high quality of fresh products is guaranteed, which is one of the main strengths of modern stores in a country where refrigerating capacity is not always sufficient to keep fresh products cooled throughout their long journey in the supply chain.