The overall retail landscape in China is still very fragmented. The vast majority of outlets are small and individually owned. This is especially true in the poorer provinces, where dealers are forced to distribute to a wide variety of retail outlets. And some traditions are hard to break. Free markets, though insignificant in number, still account for one- quarter of all retail sales value.
Department stores are also top performers, scooping up most non-food purchases.
But the most dramatic development in the country's retail industry, and one that is poised to redefine distribution in China, has been the introduction of hypermarkets and warehouse stores in the past five years. The Economist Newspaper Limited. All rights reserved.