The first thousand three hundred and eleventh chapter retail market competition
The competition in the stock markets in Asia has come to an end for the time being, but the competition in the retail industry in Canada has not only not subsided, but has become more and more intense.
Since January, the four major retail groups under the Lee Consortium, together with Ito-Yokado and Carrefour, have fought more than two dozen wars with American-led retail groups such as Sears, Kmart, Wal-Mart, and Costco.
monthly price war.
Liu Weifang, the president of Xuelan Supermarket Group, who is the head of Li's consortium this time, faithfully implements Li Guangyu's orders and will use any means or cost to squeeze American retail out of the Canadian market.
Relying on the preferential policies of the Commonwealth, coupled with the store's own advantages, relying on the strong financial resources behind it, and its low prices, the American retail group encountered the biggest trouble in the Canadian market in its history.
Now Kmart, Sears, even Wal-Mart and Costco are facing difficult choices. If they don't want to lose money, they can withdraw from the Canadian market. If they want the market to subsidize them every day.
Moreover, the actual selling prices of the major retail groups of the Lee Consortium are different. In the vicinity of large-scale American retail supermarkets, the major retail groups of the Lee Consortium will use various discounts and activities to squeeze the American retail market.
In areas where there is no US retail market, these retail groups will naturally not continue to offer event discounts.
This is not only an encirclement and suppression of the American retail group, but also a clear target for them. The Li Group will not engage in activities in the entire market just because there is an American retail group, so that no matter how large the family business is, it will be brought down.
On March 18, at the Canadian headquarters of Xuelan Supermarket Group, Li Xuelan, who had just arrived, held a high-level meeting of the Li Group in Canada.
At the meeting, Li Xuelan said: "In the past two months, Li Sheng is very satisfied with the results you have achieved in the Canadian market, and hopes that you can continue your efforts and strive to completely drive American retail groups out of the Canadian market within this year.
In order for our retail group to completely occupy the Canadian market, Li Sheng once again specially approved the expansion of Hengyu Supermarket Group by 20 stores, 7-11 by 100 stores, Xuelan Supermarket by 5 stores, and South China Electrical Appliance Chain Group by 30 stores."
Listening to Li Xuelan's words, everyone present was very happy. They have made great achievements and their stores have expanded again. This is Li Guangyu and the senior management's recognition of their best results in more than two months.
Although several major groups have not made much profit in the past two months, many small and medium-sized retail supermarkets and stores in the Canadian market are rapidly disappearing. The Canadian market at this time is very similar to the Xiangjiang market when Hengyu Supermarket Group and Watsons joined forces to compete with Wellcome Supermarket.
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The competition between several giants has forced many small and medium-sized retail supermarkets to choose to withdraw from the retail industry. They cannot afford to fight a price war. Several major retail groups under Li's Group dare not make a profit or even lose money. Several major retail groups in the United States also dare to do this because
They have strong capital behind them.
But these middle and lower retail groups do not. They have limited capital and many of their stores are rented. Once they join the price war, they will only end up in pieces.
This has resulted in these small and medium-sized retailers, and even some individual retailers, having no choice but to withdraw from this industry. They do not have any capital or advantage in the price war.
It’s not like there weren’t some small and medium-sized retailers protesting. After all, they are mainly Canadians, and this time the major brands are either from the United States or Xiangjiang, plus Japan’s Ito-Yokado and France’s Carrefour, and none of them are Canadian.
of.
These small and medium-sized retailers hope that the government can intervene in this struggle in the retail industry, accusing several major retail groups of engaging in unfair competition and seriously disrupting the normal operating order of the Canadian retail market.
It's a pity that the influence of these small and medium-sized retailers is still too small, far less than the influence of the forces behind the major retail groups on the Canadian government. In addition, the public is very happy to see this, so that competition can reduce the cost of living.
, can improve their quality of life, so this matter can be left alone.
Some small and medium-sized retailers that jumped out were called capitalists by the Canadian people. Even if these small and medium-sized retailers pointed out the harm to the people after a few major retail groups monopolized the market, it still had little effect.
Liu Weifang responded aloud: "Ms. Li, we will work hard to fulfill Li Sheng's request, completely drive American retail groups out of the Canadian market within this year, and firmly control the Canadian retail industry in our own hands."
Later, Liu Weifang also reported on the situation of Carrefour and Ito-Yokado. Among them, Ito-Yokado was fine, and it was quite pleasant to cooperate with them so far. However, Carrefour's attitude towards the Canadian market has obviously changed.
Perhaps the major retail groups of the Lee Consortium have expanded too fast and too strongly in the Canadian market. They are worried that after the American retail group retreats, their market in Canada may not be guaranteed. Therefore, after the American retail group showed weakness, Carrefour has cooperated with the American retail group.
Retail collaboration signs.
Listening to Liu Weifang's report, Li Xuelan was not too surprised. As for why Ito-Yokado did not join forces with Carrefour and several major retailers in the United States, Li Xuelan estimated that the reason why this supermarket group is jointly controlled by Mitsui, Sumitomo, and Ito is now almost
Not long after Jia Cai was sanctioned by the American consortium, he and the Lee consortium are still in an alliance, so he can still stand on his side.
Once the relationship between Lee's consortium and Mitsui, Sumitomo and other consortiums deteriorates, both parties will vigorously suppress each other, just like in the Asian market. Previously, Wal-Mart, Ito-Yokado, and Carrefour joined forces to fight against several major retail groups owned by Lee's.
Now Ito-Yokado and Lee's several major retail groups are suppressing Wal-Mart and Carrefour. The reason for this is mainly based on the power relationship behind the major retail groups. If the relationship is good, they will cooperate. If the relationship is bad, they will compete.
Li Xuelan said: "Since Carrefour wants to stand against us, then there is no need to be polite to them, and let them leave the Canadian market. It is enough that we and Ito-Yokado are here, and this will not create any monopoly."
Although Li's owns four retail groups and cannot form a monopoly at all, this matter is afraid of being serious, and the governments of all parties are not willing to let the Li's consortium dominate the local retail market, so Ito-Yokado is here
is good.
Originally, Li Xuelan planned to keep Carrefour so that there would be three parties in the Canadian market. Although Li's Retail Group occupies a larger market share, the government would not say much.
As a result, Carrefour seems unwilling to see Lee's retail group dominate the Canadian market. Now that it wants to join forces with American retail to deal with Lee's retail, it has no choice but to squeeze it out as well.
Liu Weifang doesn't have any objections to this. Anyway, the price war has already started, and she doesn't care about Carrefour and Carrefour. As for monopoly or not, that is a problem that will be faced in the future. At worst, two more retail groups will be brought in in the future.
She knew that the shareholders behind the Xiangjiang Consortium and the Hsinchu Bank Consortium now have a lot of funds, and they will start a major expansion this year, among which Watsons and Uni-President Retail Company are the focus of the expansion of their two major consortiums.
As long as the funds are in place, these two companies will also embark on a rapid expansion, which is also a microcosm of the comprehensive development of these two consortiums.