Lianhua, feeling Wal-Marted, hits acquisition trail

Shanghai-based Lianhua Supermarket Holdings said it is planning to increase spending by a third next year to add outlets to compete with Wal-Mart and other stores, according to a Bloomberg report. Plans call for acquiring one or two regional chains, Lianhua Chairman Wang Zongnan told Bloomberg. He said the company would spend US$72 million to bring its store count up to 3,000, and he said the company would increase acquisition spending still more in 2005. He said Wal-Mart and other foreign players forced Lianhua to grow faster. Lianhua is allied with France's Carrefour group.