Taiwan's Two Leading Convenience Chains Vie for Niche in China

Taipei, March 1, 2011 (CENS)--Taiwan's two leading convenience store chains—President Chain Store Corp., the sole franchise of “7-Eleven” in Taiwan, and Family Mart Ltd. (Taiwan) are competing for market niche in China.

Family Mart China Holding was established in 2004, with 50.5% of its stake owned by Tingtong (Cayman Island) Holding Co., an affiliate of Ting Hsin International Group, a Taiwanese food giant in China; and the remaining 49.5% held by Family Mart Japan and Family Mart Taiwan, with the latter owning 18%. In the same year Family Mart China opened its first store in Shanghai and three years later expanded into Suzhou, Jiangsu Province and Guangzhou, Guangdong Province.

At the end of last year Family Mart China operated 532 stores in China for a net increase of 200 from a year earlier, of which 420 stores being in Shanghai, and expects to see a net increase of 250 stores.

A senior manager at Family Mart Taiwan says that the average daily revenue of each Family Mart in Shanghai in 2009 was 7,100 renminbi (RMB) or about NT$31,950 (US$1,031), which rose to 7,300 RMB or about NT$32,850 (US$1,060) in 2010. Last July Family Mart China's Shanghai operations finally turned profitable, but still remains in the red overall in China.

The President Chain opened its first “7-Eleven” in China in 2009, also in Shanghai. With 57 stores, the firm aims to triple the number to over 150 by the end of this year.

In 2010 President Chain and Family Mart Taiwan scored revenues of NT$114.664 billion (US$3.7 billion) and NT$42.953 billion (US$1.39 billion), respectively, with the former's earnings per share (EPS) being NT$6 (US$0.194) and the latter NT$4.2 (US$0.136).