Chain store expansion pace slows to 13-year low

Chain stores in China witnessed in 2012 their slowest sales expansion since 2000, according to figures from the China Chain Store and Franchise Association Wednesday that dimmed the outlook for the physical economy in the country.

According to the figures, the total sales of the top 100 chain store brands in the world's second largest economy increased to 1.87 trillion yuan ($300 billion) in 2012, a 10.8 percent growth year-on-year, the slowest rate since 2000. The number of stores owned by the top 100 brands rose by 8 percent, the slowest expansion in the recorded history of chain stores.

The association attributed the slow growth to a decline of labor dividends and changes in consumer spending habits.

"Booming online sales and the declining spending power of consumers aged between 15 and 60 are the main reasons for the drop," Yang Qingsong, vice secretary-general of the association, told the Global Times Wednesday.

Figures from the National Bureau of Statistics show that the labor force between 15 and 59 years old declined by 3.45 million, its first-ever drop.

Suning Yun Commercial Group Co topped the chain-store ranking with a sales volume of 124 billion yuan ($20 billion), followed by Bailian Group with 117.5 billion yuan and Gome Electrical Appliances with 94.1 billion yuan, according to the survey.

"The industry could see M&A if the situation gets worse," Yang warned.