Carrefour unit targets Shanghai

Discount chain
operator Dia International of Spain has established its first presence in China. The
subsidiary of Carrefour has opened four joint ventures stores in Shanghai, the first of a
planned 50 outlets in the city this year and 300 by 2006. Dia holds 55 per cent of the joint
venture, with local operator Lianhua Supermarket owning the rest.
The stores will
have a floor space of 300-500 sqmetres and will set prices about 10per cent cheaper than
those in hypermarkets. The joint venture is able to offer low prices by buying direct from
manufacturers and selling only a few brands of each type of product.
The stores
will be located in outlying areas of the city with high population density hut few
supermarkets or hypermarkets.