Are supermarkets losing their edge?

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Shanghai - Supermarkets are facing bigger challenges in China as young shoppers look for convenience and quality, a TNS survey showed.

The report showed that 10% of Carrefour's 29% share of shoppers are not committed to the brand and would choose to shop somewhere else if they could, while Tesco's 10% market share could face a drop of 2.4% for the same reason.

Japanese-owned retailer FamilyMart, according to the study, is on track to double its market share in Shanghai if it can cater to younger Chinese shoppers.

Location and price are the major hurdles to potential FamilyMart shoppers, respondents said.

Other retail chains such as Watsons (2.6%) and Metro (2.5%) also see a potential growth in Shanghai market share.

Sandy Chen, senior research director of TNS China, said the big retailers could learn from convenience stores and operate better, such as improving the shopping experience and focusing on fresh, high quality products.

Jan Hofmeyr, chief researcher, behaviour change at TNS, added that as consumers are confronted with more and more choice, retailers should be asking themselves whether its market share is backed up by real commitment to the brand.

The survey, called The Commitment Economy, collected results from more than 39,000 people in 17 markets across the world.

Since 2004, FamilyMart has launched 400 outlets in Shanghai.

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