Cancel
Business· Retail

ALDI and Costco open stores in China, plans for expansion in more cities

CKN
minutes 2019/08/07 11:30:15
2,622
Aldi; Costco; foreign retailers

Aug 07, 2019 (China Knowledge) - Germany-based discount grocery chain ALDI opens its first two locations in China after entered the Chinese market in early 2017 through Alibaba Group Holding's Tmall Global ecommerce platform. Both grocery stores were opened in June at Shanghai.

Meanwhile, U.S.-based Costco Wholesale, the second largest retailer in the world after Walmart, is set to open its first physical store in China at the end of August.

These moves follow some exits of Western companies from China's retail market. German food wholesaler Metro, the fourth-largest retailer in the world, is in the final stages of selling its China stores to local retailer.

In June, another hypermarket chains French-based Carrefour sold 80% of its equity interest in its local unit to Chinese retailer Suning.com for RMB 4.8 bln.

However, these have not deterred the new arrivals. Costco's store in Shanghai will offer 1,250 parking lots. Its products will focus on imports in packaging sizes geared for families and small businesses, and will also include high-quality domestic produce.

According to unconfirmed German media, ALDI plans 10 more openings in China this year, and a target of 50 to 100 locations. ALDI China is heavy on imports. It sells beef and fresh milk from Australia, and offers pork knuckle with sauerkraut and roast potatoes from Germany.

Copyright © 2018 www.chinaknowledge.com

Send feedback or comments to: info@chinaknowledge.com

For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com

To access our page on Bloomberg, type CKFI

share