China’s largest supermarket operators are struggling to recover from the pandemic as weakening demand continues to drag on sales, reports Nikkei Aisa. Seven out of the 14 publicly traded supermarket chains reported year-on-year declines in first-quarter sales, according to their financial reports. Four of them posted a net loss during the first three months compared with nine that were in the red for all of 2022.
Supermarket operators had a tough year in 2022 as the world’s second-largest economy struggled with stringent pandemic restrictions and a complex international environment.
Lianhua Supermarket, which mainly operates in Shanghai and neighboring cities, said business was under great pressure due to shrinking demand, supply chain disruptions and weaker market expectations. The chain posted a net loss of RMB 212 million ($30.5 million) in 2022, reflecting last year’s prolonged lockdowns in Shanghai.