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1、The world famous consulting firm, McKinsey, has ever commented on China'sretail market: " We are witnessed unprecedented competitive environment in Chineseretail market , Chained Supermarkets in China are facing with spe

2、cial challengewhich any other country has ever faced.We can never find a country where you canfind all the world famous giant retailers are competing each other.So Chinese chainedsupermarkets are facing with the most sti

3、ff competition in the world". Parknshop China was established in 1984,it is controlled by Hongkong Parknshop,one of affiliated agencies of Hong Kong Hutchison Whampoa Group.The grossmargin of Parknshop (here below we

4、 use "PNS" to replace "Parknshop") is less than10 percent and net profit rate of Parknshop is less than 1%.You can find theintroduction of the development history of Parknshop in mainland in the first part ofthe Third Pa

5、rt of this thesis.PNS established several dozens of small supermarkets, assame as it did in Hongkong, in some large cities, such as Beijing, Shanghai andGuangzhou, But these supermarkets were shut down in the next ten ye

6、ars and builtStandard Supermarkets (1000 square meters large) as its main business.In 2000, PNSestablished Hypermarket as its main business.Changing business models has wastedPNS' much precious time.Then I pointed out ma

7、ny shortcomings PNS had in the nextpart of the Third Part.of this thesis: PNS changed merchandise-positioning two timesthere is no rules of establishing stores; running six kinds of stores at the same time,which is beyon

8、d PNS' ability; to make things worse, thdse six kinds of stores areestablished by emulating PNS' competitors.In order to invest on 3G Mobile phonebusiness, all the branches must cut down operating expenses, so PNS reduce

9、 itsemployees' salary which leads to many employees' resigning; PNS is not a publicfirm, so its employees have no stock option which is an important motivating method.PNS' budget process is old fashioned, as well as its

10、competitors; The stock turnover isvery low because one-in-one-out-buying-rule has not been implemented strictly
  The Fourth Part of the thesis point out how to solve these problems.Mysuggestion of where to establishi

11、ng new stores is to build the stores in NorthGuangdong, West Guangdong and Guangxi; Due to eighty percent of the salesgenerated by Hypermarkets, concentrate resources on them is a reasonable choice;reducing repeat format

12、s and considering increasing the new business format--theDiscount Hypermarket or Food Discount Store; Commodity policy should stick to bedifferent from its rivals ; Using positive way to cut costs, such as improving rota

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