Magazines Archives - 2007 October

China records fastest retail sales growth
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CHINA’S retail sales for August this year totalled RMB711.7 billion (US$94.5 billion), increasing by about 17.1% year-on-year, by far the fastest growth rate that the country has seen since May 2004. This is according to the Chinese National Bureau of Statistics, which also reported that over the past eight months, retail sales volume grew by 15.7%, accounting for more than RMB5.6 trillion.

Despite the rosy outlook, analysts are quick to state that the growth is a reflection of strong inflation in China, which grew by about 1% from the previous month, rather than a hastening economy. “Retail sales growth is obviously strong. The problem is that the figures are being pushed up by the rising inflation as well,” said Paul Cavey, an economist with Macquire Securities, Hong Kong.

However, Lin Songli, senior economist at Guosen Securities, Beijing, recognised that consumption is only beginning to pick up, as the country continues to shift from “unsustainable reliance on export”.

Lin added: “Consumption growth has not reached its peak yet, and we are now expecting even [higher] growth rates in the coming months.”

As such, the government has stepped up its efforts to increase consumer expenditure by ensuring better social welfare for its people. Consequently, measures have been put in place to reduce the economy’s dependence on investments and exports, while providing a larger budget for education and health to encourage people to save for future spending.

Of the categories grown, sales of grain and oil rose significantly by 44%, as did meat, poultry and eggs, which surged by 45.2%. At the same time, total sales for the wholesale and retail sectors soared by 17.2% over last year, to RMB597.3 billion, while sales in the catering and lodging industry grew to RMB98.5 billion, up by 19.1%. In July, the bureau reported a 16.4% growth in retail sales over the same period from the previous year.


2007 October Stories:

War on shrinkage begins with education and awareness

China records fastest retail sales growth

Gap to expand to the Philippines by 2012

Bossini unveils ‘family-fit’ corporate branding

Robinsons opens a world-class store in Kuala Lumpur

Costco reveals plans to enter Australia

Malaysia’s retail sector poised to entice youths

Yamada Denki acquires Kimuraya, eyes overseas expansion

Courts Megastore bags award for best visual merchandising solution

Lotte ventures into Moscow, plans European expansion

Dairy Farm, SPRING and WDA launch initiative to attract students

Trent to operate Benetton’s Sisley stores in India

Tate & Lyle opens Shanghai factory to better serve Asian consumers

China’s dairy farmers to get state help

War on shrinkage begins with education and awareness

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