Carrefour, Europe‘s largest retailer, said it would open 20 to 25 hypermarkets on the mainland annually over the next few years to increase market penetration. 
      The hypermarket operator, which has 112 outlets on the mainland covering Shanghai to Urumqi, said it was upbeat on the mainland economy, particularly domestic consumption. 
      "We opened more than 20 stores last year, so basically we are going to keep this development momentum," said Carrefour spokesman Chen Bo. 
      With growing urbanisation, the potential for hypermarkets remained strong and Carrefour would reach out to second, third and even fourth-tier cities, Mr Chen said. 
      The French firm forecasts sales growth of at least 20 per cent this year.
It is competing with the mainland arms of global players such as the world‘s No1 retailer Wal-Mart Stores and Tesco of Britain as well as local companies which have deep roots and history in the country. 
      Ma Ruiguang of Flyhorses Consulting, a chain store consultation agent, said Carrefour‘s expansion plan was not surprising. 
      "Its sales network grows at between 10 per cent and 20 per cent, which is not that aggressive in such a big market," Mr Ma said. 
      He said Carrefour would face stiff competition from Wal-Mart soon after the US firm further tightened co-operation with Taiwanese-owned Trust-Mart, which has 101 stores on the mainland. Wal-Mart has 104 stores on the mainland and a 35 per cent stake in Trust-Mart. 
      "Carrefour‘s penetration target in small locations will keep some regional players at bay," Mr Ma said. 
      Hong Kong-listed Times, Wumart Stores, Beijing Jingkelong (SEHK: 0814) and KPI are other regional supermarket operators. 
      Kenneth Fang Hung, the founder and chairman of Times, has said that he kept expansion to third and fourth-tier cities such as Yancheng and Huaian in Jiangsu and Fei Cheng in Shandong to avoid competition with global retailers such as Wal-Mart and Carrefour. 
      Times will allot 120 million yuan (HK$137.5 million) to open six stores in the second half of this year. The company has 45 hypermarkets and 17 supermarkets in 48 small cities.