A new round of changes is likely to be seen in the Chinese supermarket industry this year after unprecedented upheavals in 2011, fueled by the outbreak of controversial issues including price fraud, management reorganization, and falsely labeled products.

In 2011, four major retailers — Carrefour, Wal-Mart, Tesco and Metro — all saw top-level management changes in their China operations. Beijing Business Today, a newspaper, reported that industry insiders believe the management reshuffles mirror changes in the four enterprises' stance toward the Chinese market. New managers will face stiff competition from domestic rivals and rapidly increasing costs.

Price fraud at supermarkets triggered a chain reaction last year; on Jan. 26, the National Development and Reform Commission publicized "forged original prices" and other irregular practices at many major retailers. Despite penalties handed out by the commission, price fraud still persists, including the posting of two sets of prices, falsified price tags and false discounts.

Another change will affect the way retailers deal with farmers. The Ministry of Commerce has asked municipal regulators to assist with the direct supply by farmers to major supermarkets to cut down on costs and enable consumers to buy products at lower prices.

Source:chinabevnews.com