(Yicai Global) Aug. 4 -- The 'Convenience Stores Prosperity Index Report' for the second quarter released by China's ministry of commerce (Mofcom) yesterday suggests that small retailers are confident in their development prospects.
The index came in at 73.95 in the second quarter, an increase of 1.7 from that recorded for the previous quarter, indicating that convenience store operators are generally optimistic about business growth in future. Specifically, the business climate index rose 1.4 to 82.5, in line with the general optimism among store managers. The store prosperity index nudged up 2.0 to 68.3, meaning that local store operators are in a more upbeat mood.
Convenience store managers get relatively high scores on such factors as sales growth prospects for the industry and their respective stores, increase in store and employee numbers, core business profits and business environment, the report shows. In particular, the store sales growth confidence index was 96.2, the highest of all sub-indices, which was also the case in the first quarter. It means that retailers are confident in business growth this year. They are generally optimistic about growth in store and customer numbers, product and service coverage and operating profits, while expressing that store rent and public utility and labor costs remained the main sources of concern.
All in all, solid sales growth last year and a bright development prospect this year, coupled with increasing capital investment and the rise of cashier-free retail stores, have made convenience store operators optimistic about the industry's future, and the confidence level has improved steadily.