The Beijing municipal government is striving to create a retail chain network in residential communities this year, with foreign convenience store operators clamouring for a chance to enter the lucrative market.

Sources from the Beijing Commerce and Trade Commission revealed about 400 convenience stores are due to open their doors by the end of 2003 in urban Beijing.

Yang Xinjing, a commission official, told China Daily that Seven-Eleven, the world's largest convenience store enterprise, a Spanish discount store operator and France's Champion Convenience Store chain have all been approved to open outlets in the capital's residential communities.

"Propelled by Beijingers' improving housing conditions and the rapid development of urban residential communities, the demand for convenience stores has surged," said Yang.

Experts also pointed out that due to the increase in living standards, people's requirements of commercial sectors have diversified.

Hypermarket, supermarket, department stores and convenience stores all should be developed to meet the various demands of the citizens.

"Compared with Shanghai, Guangzhou and Shenzhen, the convenience store sector is still at a primary stage of development in Beijing," said Yang.

Until now, Super24, Shanghai Hualian and Quik outlets have emerged in some residential communities within the city's Fourth Ring Road.

"But it is far from enough to satisfy demand and the allocation is not sound because of the lack of general design," said Yang.

The municipal government has formulated a detailed plan for the layout of new convenience stores, most of which will be located in newly established residential communities throughout the city.

(China Daily February 17, 2003)