kpi report for retail chain stores in china 2009 q3 · kpi report for retail chain stores in china...

Li & Fung Research Centre China Chain Store & Franchise Association Member of the Li & Fung Group

1

2009 Q3

KPI report for retail chain stores in China

Foreword

About the KPI report

The China Chain Store & Franchise Association and the Li & Fung Research Centre have collaborated and established

the Key Performance Index System (hereafter the “KPI system”) for retail chain operators in China since 2007 and

published reports on quarterly basis. The system aims to collect key performance indices of different format retail stores

in China.

In 2009, the data collection system are further upgraded and revised, and more store samples have been added. The

revised KPI report for 09Q3 covers over 100 retail stores in China of 5 major formats, including convenience stores,

supermarkets, hypermarkets, department stores and home electronics appliance chains, of which supermarkets and

hypermarkets are further divided into several categories by operating area for easier references. We hope this report

can shed some light on the key development trends of China's retail chain stores.

About the indicators

Data of the following is collected in the KPI system –

1. Monthly sales (月度銷售額) – Pre-tax monthly sales value

2. Total operating area (總營業面積) – Including self-operating area and leasing area

3. Leasing area (對外租賃面積) – Area leased to other operators

4. Total staff number (員工總數) – Total number of staff including dispatched employees hired by labor agents (勞務派遣人員)

5. Total number of contract staff (正式員工數) – Total number of staff hired directly by the retailers

6. Total operating cost (成本及費用總額)

7. Total salaries and wages (工資總額)

8. Total number of SKUs (單品總數)

9. Number of SKUs distributing directly through the distribution centre (統一配送單品數)

10. Average daily number of transactions (平均日交易數)

11. Inventory turnover days (庫存周轉天數) – Average number of days for inventory to turnover once

12. Non-operating income (營業外收入) – Income excluding sales of goods


2

2009 Q3


Survey results by retail formats

I. Convenience stores Average operating area: 106m

2

Average number of cash registers: 1 (i.e. 1 cash register for every 106 m2)

Monthly sales

0.25

0.22 0.23

0.2

0.21

0.22

0.23

0.24

0.25

0.26

Jul Aug Sep

(mill

ion y

uan)

Average sales per m 2

78

7266

60

65

70

75

80

Jul Aug Sep

(yuan/ m

2/d

ay)

Average sales per staff

1069

910989

800

850

900

950

1000

1050

1100

Jul Aug Sep

(yuan/p

ers

on/d

ay)

Average customer spending

12.54

11.61

16.05

0

5

10

15

20

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

600

650

700

750

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

6,500

7,000

7,500

8,000

8,500

(yuan/m

achin

e/d

a

y)

Eff iciency 1 (yuan/machine/day)

Eff iciency 2 (number of transaction/ machine /day)

Gross margin

19.31

19.5

19.51

19.2

19.25

19.3

19.35

19.4

19.45

19.5

19.55

Jul Aug Sep

(%)


3

2009 Q3


Jul 09 Aug 09 Sep 09 Average

1. Monthly sales (million yuan) 0.22 0.23 0.25 0.23

2. Average sales per m2

(yuan/ m2/day)

66 72 78 72

3. Average sales per staff

(yuan/person/day) 910 989 1069 989

4. Average customer spending

(yuan/visit) 16.05 11.61 12.54 13

5. Cashier efficiency 1

(yuan/machine/day) 7,033 7,398 7,999 7,477

Cashier efficiency 2

(number of transaction/

machine /day)

656 675 723 685

6. Gross margin (%) 19.50 19.51 19.31 19.44

7） Inventory turnover days：11.1 days

8） Average operating area per employee (員工配置): 13.25 m2/employee


4

2009 Q3


II. Supermarkets (divided into 4 groups according to operating area)

1. Supermarkets (300-999 m2)

Average operating area: 527 m2

Average number of cash registers: 4 (i.e. 1 for every 132 m2)

Monthly sales

1.141.11

0.99

0.9

0.95

1

1.05

1.1

1.15

1.2

Jul Aug Sep

(mill

ion y

uan)


72

63

68

55

60

65

70

75

Jul Aug Sep

(yuan/ m

2/d

ay)


1,579

1,495

1,376

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

Jul Aug Sep

(yuan/p

ers

on/d

ay)


33.49

32.12

34.67

30

31

32

33

34

35

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

340350360370380390400

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

7,500

8,000

8,500

9,000

9,500

10,000

(yuan/m

achin

e/d

a

y)



Gross margin

13.36

13.8914.05

13

13.2

13.4

13.6

13.8

14

14.2

Jul Aug Sep

(%)


5

2009 Q3





(yuan/ m2/day)

68 63 72 68

3. Average sales per employee

(yuan/person/day) 1,495 1,376 1,579 1,483


(yuan/visit) 34.67 32.12 33.49 33.43


(yuan/machine/day) 8,969 8,257 9,473 8,900



machine /day)

367 363 390 374

6. Gross margin (%) 13.89 14.05 13.36 13.77

7） Inventory turnover days：23 days

8） Average operating area per employee (員工配置): 22 m2/employee


6

2009 Q3


2. Supermarkets (1,000-1,999 m2)

Average operating area: 1,365 m2


Monthly sales

2.81

2.56

2.5

2.3

2.4

2.5

2.6

2.7

2.8

2.9

Jul Aug Sep

(mill

ion y

uan)


69

61

61

56

58

60

62

64

66

68

70

Jul Aug Sep(y

uan/ m

2/d

ay)


1,130

996

1,002

900

950

1000

1050

1100

1150

Jul Aug Sep

(yuan/p

ers

on/d

ay)


55.91

51.5939.83

0

10

20

30

40

50

60

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

280

290

300

310

320

330

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

9,500

10,000

10,500

11,000

11,500

12,000

(yuan/m

achin

e/d

a

y)



Gross margin

15.38

15.01

15.29

14.8

14.9

15

15.1

15.2

15.3

15.4

15.5

Jul Aug Sep

(%)


7

2009 Q3





(yuan/ m2/day)

61 61 69 63


(yuan/person/day) 996 1,002 1,130 1,042


(yuan/visit) 39.83 51.59 55.91 49.11


(yuan/machine/day) 10,329 10,397 11,721 10,816



machine /day)

320 313 298 310

6. Gross margin (%) 15.01 15.29 15.38 15.23


8） Average operating area per employee (員工配置): 16.45 m2/employee


8

2009 Q3





Monthly sales

6.2

5.695.33

4.5

5

5.5

6

6.5

Jul Aug Sep

(mill

ion y

uan)


75

6963

55

60

65

70

75

80

Jul Aug Sep(y

uan/ m

2/d

ay)


1,5261,2691,402

0

500

1,000

1,500

2,000

Jul Aug Sep

(yuan/p

ers

on/d

ay)


48.97

44.0342.73

38

40

42

44

46

48

50

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

240

245

250

255

260

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

0

5,000

10,000

15,000

(yuan/m

achin

e/d

a

y)



Gross margin

13.45

13.05

13.57

12.6

12.8

13

13.2

13.4

13.6

13.8

Jul Aug Sep

(%)


9

2009 Q3





(yuan/ m2/day)

63 69 75 69


(yuan/person/day) 1,269 1,402 1,526 1,399


(yuan/visit) 42.73 44.03 48.97 45.24


(yuan/machine/day) 11,609 12,829 13,964 12,801



machine /day)

247 257 248 250

6. Gross margin (%) 13.05 13.57 13.45 13.36




10

2009 Q3




Average number of cash registers: 22 (i.e: 1 for every 211 m2)

Monthly sales

13.0410.73

10.63

0

2

4

6

8

10

12

14

Jul Aug Sep

(mill

ion y

uan)


94

77

75

0

20

40

60

80

100

Jul Aug Sep(y

uan/ m

2/d

ay)


1,7931,429

1,463

0

500

1,000

1,500

2,000

Jul Aug Sep

(yuan/p

ers

on/d

ay)


58.44

46.44

46.9

0

10

20

30

40

50

60

70

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

255

260

265

270

275

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

0

5,000

10,000

15,000

20,000

25,000

(yuan/m

achin

e/d

a

y)



Gross margin

12.96

12.37

12.41

12

12.2

12.4

12.6

12.8

13

13.2

Jul Aug Sep

(%)


11

2009 Q3





(yuan/ m2 /day)

75 77 94 82


(yuan/person/day) 1,429 1,463 1,793 1,562


(yuan/visit) 46.9 46.44 58.44 50.59


(yuan/machine/day) 15,622 15,989 19,604 17,072



machine /day)

266 270 262 266

6. Gross margin (%) 12.37 12.41 12.96 12.58




12

2009 Q3


III. Hypermarkets (divided into 3 groups by operating areas)

1. Hypermarkets (6,000-9,999 m2)



Monthly sales

9.91

8.72

8.75

8

8.5

9

9.5

10

Jul Aug Sep

(mill

ion y

uan)


43

3836

32

34

36

38

40

42

44

Jul Aug Sep

(yuan/ m

2/d

ay)


1,143

9741,009

850

900

950

1000

1050

1100

1150

1200

Jul Aug Sep

(yuan/p

ers

on/d

ay)


60.55

52.87

54.49

48

50

52

54

56

58

60

62

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

145150155160165170175

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

7,5008,0008,5009,0009,50010,00010,500

(yuan/m

achin

e/d

a

y)



Gross margin

12.12

12.43

12.11

11.9

12

12.1

12.2

12.3

12.4

12.5

Jul Aug Sep

(%)


13

2009 Q3





(yuan/m2/day)

36 38 43 39


(yuan/person/day) 974 1,009 1,143 1,042


(yuan/visit) 54.49 52.87 60.55 55.97


(yuan/machine/day) 8,434 8,737 9,900 9,023



machine /day)

169 157 155 160

6. Gross margin (%) 12.43 12.11 12.12 12.22




14

2009 Q3


2. Hypermarket (10,000-14,999 m2)



Monthly sales

13.21

11.41

12.83

10.5

11

11.5

12

12.5

13

13.5

Jul Aug Sep

(mill

ion y

uan)


4140

34

0

10

20

30

40

50

Jul Aug Sep(y

uan/ m

2/d

ay)


1,434

1,199

1,393

1,0501,1001,1501,2001,2501,3001,3501,4001,4501,500

Jul Aug Sep

(yuan/p

ers

on/d

ay)


59.39

53.2251.75

46

48

50

52

54

56

58

60

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

240

250

260

270

280

290

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

12,000

13,000

14,000

15,000

16,000

17,000

(yuan/m

achin

e/d

a

y)



Gross margin

13.94

14.23

14.09

13.7

13.8

13.9

14

14.1

14.2

14.3

Jul Aug Sep

(%)


15

2009 Q3





(yuan/ m2/day)

34 40 41 39


(yuan/person/day) 1,199 1,393 1,434 1,342


(yuan/visit) 51.75 53.22 59.39 54.78


(yuan/machine/day) 13,592 15,792 16,255 15,213



machine /day)

262 287 279 276

6. Gross margin (%) 14.23 14.09 13.94 14.09




16

2009 Q3


3. Hypermarket (over 15,000 m2)



Monthly sales

23.29

22.18

23.26

21.5

22

22.5

23

23.5

Jul Aug Sep

(mill

ion y

uan)


4242

39

37

38

39

40

41

42

43

Jul Aug Sep(y

uan/ m

2/d

ay)


1,528

1,408

1,526

1,300

1,350

1,400

1,450

1,500

1,550

Jul Aug Sep

(yuan/p

ers

on/d

ay)


82.39

76.49

78.01

72

74

76

78

80

82

84

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

195

200

205

210

215

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

14,500

15,000

15,500

16,000

16,500

17,000

(yuan/m

achin

e/d

a

y)



Gross margin

10.98

10.82

10.68

10.5

10.6

10.7

10.8

10.9

11

11.1

Jul Aug Sep

(%)


17

2009 Q3





(yuan/m2/day)

39 42 42 41


(yuan/person/day) 1,408 1,526 1,528 1,487


(yuan/visit) 78.01 76.49 82.39 78.96


(yuan/machine/day) 15,146 16,415 16,432 15,998



machine /day)

206 213 203 207

6. Gross margin (%) 10.82 10.68 10.98 10.83




18

2009 Q3


IV. Department stores Average operating area: 30448 m

2


Monthly sales

90.13

66.3773.87

0

20

40

60

80

100

Jul Aug Sep

(mill

ion y

uan)


99

8170

0

20

40

60

80

100

120

Jul Aug Sep(y

uan/ m

2/d

ay)


1,903

1,3561,560

0

500

1,000

1,500

2,000

Jul Aug Sep

(yuan/p

ers

on/d

ay)


451.23

423.33

392.78

360

380

400

420

440

460

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

105

110

115

120

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

0

20,000

40,000

60,000

(yuan/m

achin

e/d

a

y)



Gross margin

16.97

17.5217.64

16.6

16.8

17

17.2

17.4

17.6

17.8

Jul Aug Sep

(%)


19

2009 Q3





(yuan/ m2/day)

70 81 99 83


(yuan/person/day) 1,356 1,560 1,903 1,606


(yuan/visit) 392.78 423.33 451.23 422.45


(yuan/machine/day) 34,635 39,829 48,598 41,021



machine /day)

109 113 117 113

6. Gross margin (%) 17.52 17.64 16.97 17.38




20

2009 Q3


V. Home electronics appliance chains Average operating area: 14,036 m

2


Monthly sales

39.0628.91

26.85

0

10

20

30

40

50

Jul Aug Sep

(mill

ion y

uan)


93

64

66

0

20

40

60

80

100

Jul Aug Sep(y

uan/ m

2/d

ay)


4,404

3,154

3,027

0

1,000

2,000

3,000

4,000

5,000

Jul Aug Sep

(yuan/p

ers

on/d

ay)


1,460.50

1,439.50

1,399.50

1,360.00

1,380.00

1,400.00

1,420.00

1,440.00

1,460.00

1,480.00

Jul Aug Sep

(yuan/v

isit)

Cashier efficiency

0

20

40

60

80

Jul Aug Sep

(num

ber

of

transaction/

machin

e /day)

0

20,000

40,000

60,000

80,000

100,000

(yuan/m

achin

e/d

a

y)



Gross margin

16.87

17.39

16.49

16

16.2

16.4

16.6

16.8

17

17.2

17.4

17.6

Jul Aug Sep

(%)


21

2009 Q3





(yuan/m2/day)

66 64 93 74


(yuan/person/day) 3,154 3,027 4,404 3,528


(yuan/visit) 1,399.50 1,439.50 1,460.50 1,433.17


(yuan/machine/day) 60,170 57,733 84,002 67,302



machine /day)

53 46 60 53

6. Gross margin (%) 17.39 16.49 16.87 16.92




22

2009 Q3


Recent highlights of the retail chain operators

1. Strengthening fresh food sales capability

Retailers are putting more efforts in strengthening their fresh food sales capabilities, which is increasingly regarded as

an important source of profits. More and more retailers now self-operate their fresh food session instead of leasing the

areas to other operators. The fresh food sourcing strategy also evolves: centralized sourcing increasingly replaces

sourcing by individual stores. Besides, instead of sourcing from wholesalers, increasing number of retailers is now

sourcing directly from farmers. This helps flatten the distribution system and lower distribution costs.

As many domestic players mainly operate regionally, they have an edge in fresh food localized sourcing.

2. Development of community retail stores gaining momentum

Residential communities are quickly gaining retailers’ attention alongside with the rapid increase of elderly consumers in

China who are demanding more shopping convenience. This offers retailers ample business opportunities such as the

offer of dining and domestic household services; many have also launched community promotion activities to stimulate

community sales.

3. Improving supply chain efficiency

Streamlining the supply chains is receiving increasing attention. It helps retailers lower transaction cost, improve

turnover of goods and minimize the depreciation of goods, etc, and in the end contributing to increase in margin.

Some hot discussions among retailers recently include the possibility of building sourcing alliance between retailers;

cooperation with suppliers (e.g. CPFR development, i.e., “Collaborative Planning, Forecasting and Replenishment”);

improving logistics arrangement; and developing and improving information system etc.


23

2009 Q3


About the Organizations

The China Chain Store & Franchise Association

中國連鎖經營協會中國連鎖經營協會中國連鎖經營協會中國連鎖經營協會

Founded in 1997, the China Chain Store & Franchise Association (CCFA) is an official representative of the retailing and

franchise industry in China. Currently, there are 800 enterprise members with 160,000 outlets, including domestic &

overseas retailers, franchisers, suppliers, and relevant organizations. The total sales of China’s “Top 100 retail chain

operators”, which are part of the members of the CCFA, exceeded RMB 1.2 trillion in 2008, with more than 12,000

stores in total.

CCFA participates in policymaking and coordination, safeguards the interests of industry and members, provides a

series of professional trainings and industry information and data for its members and establishes platforms for

exchange and cooperation.

Li & Fung Group

利豐集團利豐集團利豐集團利豐集團

The Li & Fung Group is a Hong Kong-based multinational company with three distinct core businesses: export sourcing,

distribution and logistics, and retailing. Founded in Guangzhou in 1906, the Li & Fung Group achieved an annual

turnover of around US$16.7 billion in 2008. Today, the Li & Fung Group operates in some 40 countries and regions and

employs over 35,000 people worldwide. One of its core competencies is “Supply Chain Management” (SCM).

Li & Fung Research Centre

利豐研究中心利豐研究中心利豐研究中心利豐研究中心

Li & Fung Research Centre is the research institute of the Li & Fung Group. It serves as a knowledge bank on China's

economy, industries, logistics and distribution sector, with its research scope covering the whole spectrum of the entire

supply chain, from ideas, production, distribution, retailing to consumers. It also offers research analyses and consulting

services to colleagues and clients to assist them in their day-to-day decision-making.

© Copyright 2009 Li & Fung Research Centre and the China Chain Store & Franchise Association (CCFA). All rights reserved.

Though Li & Fung Research Centre and CCFA endeavor to have information presented in this document as accurate and updated as possible, it accepts no responsibility for any error, omission or misrepresentation. Li & Fung Research Centre, CCFA and/or their associates accept no responsibility for any direct, indirect or consequential loss that may arise from the use of information contained in this document. Reproduction or redistribution of this material without Li & Fung Research Centre and CCFA’s prior written consent is prohibited.

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