211 Q1 KPI report for retail chain stores in China Foreword About the KPI report The and the have collaborated and established the Key Performance Index System (hereafter the KPI system ) for retail chain operators in China since 27 and published reports on a quarterly basis. The system aims to collect key performance indices of different format retail stores in China. In 29, the data collection system are further upgraded and revised, and more store samples have been added. The revised KPI report covers over 1 retail stores in China of 5 major formats, including convenience stores, supermarkets, hypermarkets, department stores and home electronics appliance chains, of which supermarkets and hypermarkets are further divided into several categories by operating area for easier references. We hope this report can shed some light on the key development trends of China's retail chain stores. About the indicators Data of the following is collected in the KPI system 1. Monthly sales ( 月度銷售額 ) Pre-tax monthly sales value 2. Total operating area ( 總營業面積 ) Including self-operating area and leasing area 3. Leasing area ( 對外租賃面積 ) Area leased to other operators 4. Total staff number ( 員工總數 ) Total number of staff including dispatched employees hired by labor agents ( 勞務派 遣人員 ) 5. Total number of contract staff ( 正式員工數 ) Total number of staff hired directly by the retailers 6. Total operating cost ( 成本及費用總額 ) 7. Total salaries and wages ( 工資總額 ) 8. Total number of SKUs ( 單品總數 ) 9. Number of SKUs distributing directly through the distribution centre ( 統一配送單品數 ) 1. Average daily number of transactions ( 平均日交易數 ) 11. Inventory turnover days ( 庫存周轉天數 ) 12. Non-operating income ( 營業外收入 ) Income derived from activities other than sales of goods 1
211 Q1 Survey results by retail formats Format Monthly sales (million yuan) Average sales per m 2 Average sales per staff Average customer spending Convenience stores.32 14 1,398 14.89 19.57 Supermarkets (3-999 m 2 ) 1.25 8 1,68 32.2 15.75 Supermarkets (1,-1,999 m 2 ) 6.23 141 2,514 56.53 14.45 Supermarkets (2,-3,999 m 2 ) 9.3 11 2,482 64.29 13.1 Supermarkets (4,-5,999 m 2 ) 1.13 72 1,712 54.41 13.47 Hypermarkets (6,-9,999 m 2 ) 16.67 74 2,1 74.73 13.1 Hypermarkets (1,-14,999 m 2 ) 22.51 71 2,269 75.37 13.39 Hypermarkets (over 15, m 2 ) 3.82 56 1,781 99.13 12.17 Department stores 116.61 133 2,33 62.64 16.6 Home electronics appliance chains 2.56 12 4,782 1,776.9 n.a. Gross margin (%) Format Convenience stores Cashier efficiency 1 (yuan/machine/day) Cashier efficiency 2 (number of transaction/ machine /day) % of damaged goods Inventory turnover (Days) 6,319 431.18 11 12.75 Average operating area per employee (m 2 /employee) Supermarkets (3-999 m 2 ) 14,14 421.15 14 21.4 Supermarkets (1,-1,999 m 2 ) 25,345 394.12 23 17.72 Supermarkets (2,-3,999 m 2 ) 2,666 28.21 28 22.54 Supermarkets (4,-5,999 m 2 ) 17,152 3.25 25 23.19 Hypermarkets (6,-9,999 m 2 ) 17,54 167.25 26 27.33 Hypermarkets (1,-14,999 m 2 ) 26,947 334.25 39 32.1 Hypermarkets (over 15, m 2 ) 23,614 193.3 23 31.89 Department stores 65,122 24 n.a. n.a. 23.28 Home electronics appliance chains 89,694 64 n.a. n.a. 39.95 2
211 Q1 I. Convenience stores Average operating area: 12 m 2 Average number of cash registers: 2 (i.e. 1 cash register for every 51 m 2 ) Monthly sales Average sales per m 2 (million yuan).4.35.3.25.2.15.1.5 12 1 8 6 4 2 Average sales per staff Average customer spending 1,5 1, 5 2 15 1 5 Cashier efficiency Gross margin (number of transaction/ 1 5 1 5 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) (yuan/machine/ day) (%) 19.8 19.6 19.4 19.2 19 18.8 18.6 18.4 18.2 3
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan).34.3.32.32 1.2% 2. Average sales per m 2 16 16 1 14 18.% 3. Average sales per staff 1,426 1,423 1,346 1,398 11.3% 4. Average customer spending 15.43 15.48 13.75 14.89 4.6% 5. Cashier efficiency 1 (yuan/machine/day) 6,442 6,432 6,83 6,319-36.% 6. Cashier efficiency 2 (number of transaction/ 419 4 474 431-36.% 7. Gross margin (%) 19.65 19.65 19.4 19.57 3.9% 8) % of damaged goods:.18% 9) Inventory turnover days: 11 days 1) Average operating area per employee ( 員工配置 ): 12.75 m 2 /employee 4
211 Q1 II. Supermarkets (divided into 4 groups according to operating area) 1. Supermarkets (3-999 m 2 ) Average operating area: 526 m 2 Average number of cash registers: 3 (i.e. 1 for every 175 m 2 ) Monthly sales Average sales per m 2 (million yuan) 1.6 1.4 1.2 1.8.6.4.2 1 8 6 4 2 Average sales per staff Average customer spending 2, 1,5 1, 5 4 3 2 1 Cashier efficiency Gross margin (number of transaction/ 8 6 4 2 2, 15, 1, 5, (yuan/machine/ day) (%) 16.5 16 15.5 14.5 15 14 13.5 12.5 13 12 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 5
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 1.41 1.32 1.2 1.25 4.1% 2. Average sales per m 2 89 89 63 8 4.4% 3. Average sales per staff 1,864 1,867 1,39 1,68 7.3% 4. Average customer spending 36.32 34.98 25.29 32.2.% 5. Cashier efficiency 1 15,648 15,674 1,989 14,14 4.7% (yuan/machine/day) 6. Cashier efficiency 2 432 45 426 421-9.1% (number of transaction/ 7. Gross margin (%) 15.91 15.47 15.86 15.75 6.% 8) % of damaged goods:.15% 9) Inventory turnover days: 14 days 1) Average operating area per employee ( 員工配置 ): 21.4 m 2 /employee 6
211 Q1 2. Supermarkets (1,-1,999 m 2 ) Average operating area: 1,435 m 2 Average number of cash registers: 8 (i.e. 1 for every 179.4 m 2 ) Monthly sales Average sales per m 2 (million yuan) 1 9 8 7 6 5 4 3 2 1 25 2 15 1 5 Average sales per staff Average customer spending 4, 3, 2, 1, 8 7 6 5 4 3 2 1 Cashier efficiency Gross margin (number of transaction/ 6 4 2 4, 3, 2, 1, Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) (yuan/machine/ day) (%) 15.5 15 14.5 14 13.5 13 7
211 Q1 11 11 Average yoy %* 1. Monthly sales (million yuan) 8.62 5.2 5.4 6.23 n.a. 2. Average sales per m 2 194 117 113 141 n.a. 3. Average sales per staff 3,447 2,76 2,17 2,514 n.a. 4. Average customer spending 72.53 5.52 46.53 56.53 n.a. 5. Cashier efficiency 1 34,759 2,937 2,339 25,345 n.a. (yuan/machine/day) 6. Cashier efficiency 2 411 363 47 394 n.a. (number of transaction/ 7. Gross margin (%) 14.65 14.69 14.2 14.45 n.a. * yoy % changes not provided due to major sampling adjustment. 8) % of damaged goods:.12% 9) Inventory turnover days: 23 days 1) Average operating area per employee ( 員工配置 ): 17.72 m 2 /employee 8
211 Q1 3. Supermarkets (2,-3,999 m 2 ) Average operating area: 2,75 m 2 Average number of cash registers: 15 (i.e. 1 for every 183 m 2 ) Monthly sales Average sales per m 2 (million yuan) 12 1 8 6 4 2 c 16 14 12 1 8 6 4 2 Average sales per staff Average customer spending 3,5 3, 2,5 2, 1,5 1, 5 1 8 6 4 2 Cashier efficiency Gross margin (number of transaction/ 3 28 26 24 3, 2, 1, (yuan/machine/ day) (%) 15 14.5 14 13.5 13 12.5 12 11.5 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 9
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 9.11 1.47 7.5 9.3 14.7% 2. Average sales per m 2 17 136 88 11 13.7% 3. Average sales per staff 2,45 3,61 1,979 2,482 23.3% 4. Average customer spending 62.44 76.57 53.87 64.29 12.3% 5. Cashier efficiency 1 2,27 25,489 16,481 2,666 4.3% (yuan/machine/day) 6. Cashier efficiency 2 283 292 263 28-14.7% (number of transaction/ 7. Gross margin (%) 13.45 12.75 13.1 13.1-9.2% 8) % of damaged goods:.21% 9) Inventory turnover days: 28 days 1) Average operating area per employee ( 員工配置 ): 22.54 m 2 /employee 1
211 Q1 4. Supermarkets (4,-5,999 m 2 ) Average operating area: 4,658 m 2 Average number of cash registers: 2 (i.e: 1 for every 232.9 m 2 ) Monthly sales Average sales per m 2 (million yuan) 14 12 1 8 6 4 2 1 8 6 4 2 Average sales per staff Average customer spending 2,5 2, 1,5 1, 5 7 6 5 4 3 2 1 Cashier efficiency Gross margin (number of transaction/ 4 3 2 1 3, 2, 1, (yuan/machine/ day) (%) 14 13.5 13 12.5 12 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 11
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 12.71 9.24 8.42 1.13-25.6% 2. Average sales per m 2 88 71 58 72-26.8% 3. Average sales per staff 2,82 1,676 1,379 1,712-18.7% 4. Average customer spending 64.11 53.24 45.88 54.41-11.4% 5. Cashier efficiency 1 2,853 16,786 13,817 17,152-9.8% (yuan/machine/day) 6. Cashier efficiency 2 3 34 295 3 22.9% (number of transaction/ 7. Gross margin (%) 13.28 13.4 13.72 13.47 7.2% 8) % of damaged goods:.25% 9) Inventory turnover days: 25 days 1) Average operating area per employee ( 員工配置 ): 23.19 m 2 /employee 12
211 Q1 III. Hypermarkets (divided into 3 groups by operating areas) 1. Hypermarkets (6,-9,999 m 2 ) Average operating area: 7,624 m 2 Average number of cash registers: 32 (i.e. 1 for every 238.3 m 2 ) Monthly sales Average sales per m 2 (million yuan) 25 2 15 1 5 1 8 6 4 2 Average sales per staff Average customer spending 3, 2,5 2, 1,5 1, 5 1 8 6 4 2 Cashier efficiency Gross margin (number of transaction/ 18 17 16 15 14 3, 2, 1, (yuan/machine/ day) (%) 13.6 13.4 13.2 13 12.8 12.6 12.4 12.2 12 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 13
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 21.58 16.41 12.1 16.67-1.9% 2. Average sales per m 2 91 77 53 74-1.9% (yuan/m 2 /day) 3. Average sales per staff 2,495 2,11 1,435 2,1 1.7% 4. Average customer spending 85.48 77.5 61.21 74.73 -.3% 5. Cashier efficiency 1 21,772 18,328 12,521 17,54 5.3% (yuan/machine/day) 6. Cashier efficiency 2 176 163 161 167 8.4% (number of transaction/ 7. Gross margin (%) 12.5 13.6 13.46 13.1-2.9% 8) % of damaged goods:.25% 9) Inventory turnover days: 26 days 1) Average operating area per employee ( 員工配置 ): 27.33m 2 /employee 14
211 Q1 2. Hypermarkets (1,-14,999 m 2 ) Average operating area: 1,656 m 2 Average number of cash registers: 28 (i.e. 1 for every 38.6 m 2 ) Monthly sales Average sales per m 2 (million yuan) 3 25 2 15 1 5 9 8 7 6 5 4 3 2 1 Average sales per staff Average customer spending 3, 2,5 2, 1,5 1, 5 1 8 6 4 2 Cashier efficiency Gross margin (number of transaction/ 4 3 2 1 4, 3, 2, 1, (yuan/machine/ day) (%) 14.5 14 13.5 13 12.5 12 11.5 11 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 15
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 24.8 24.74 17.98 22.51 46.2% 2. Average sales per m 2 75 83 54 71 44.5% 3. Average sales per staff 2,46 2,658 1,744 2,269 33.1% 4. Average customer spending 85.24 78.42 62.43 75.37 17.5% 5. Cashier efficiency 1 28,573 31,56 2,79 26,947 49.8% (yuan/machine/day) 6. Cashier efficiency 2 364 339 3 334 22.% (number of transaction/ 7. Gross margin (%) 13.26 13.74 13.17 13.39-8.1% 8) % of damaged goods:.25% 9) Inventory turnover days: 39 days 1) Average operating area per employee ( 員工配置 ): 32.1 m 2 /employee 16
211 Q1 3. Hypermarkets (over 15, m 2 ) Average operating area: 18,431 m 2 Average number of cash registers: 44 (i.e. 1 for every 418.9 m 2 ) Monthly sales Average sales per m 2 (million yuan) 45 4 35 3 25 2 15 1 5 8 7 6 5 4 3 2 1 Average sales per staff Average customer spending 2,5 2, 1,5 1, 5 12 1 8 6 4 2 Cashier efficiency Gross margin (number of transaction/ 3 2 1 4, 3, 2, 1, (yuan/machine/ day) (%) 13 12.5 12 11.5 11 1.5 1 9.5 Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 17
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 39.56 3.16 22.74 3.82 6.7% 2. Average sales per m 2 69 58 4 56 5.3% (yuan/m 2 /day) 3. Average sales per staff 2,28 1,864 1,269 1,781 16.3% 4. Average customer spending 11.6 13.86 82.94 99.13-5.8% 5. Cashier efficiency 1 29,288 24,721 16,833 23,614 4.5% (yuan/machine/day) 6. Cashier efficiency 2 212 191 175 193-4.2% (number of transaction/ 7. Gross margin (%) 11.71 12.13 12.68 12.17-1.2% 8) % of damaged goods:.3% 9) Inventory turnover days: 23 days 1) Average operating area per employee ( 員工配置 ): 31.89 m 2 /employee 18
211 Q1 IV. Department stores Average operating area: 29,329 m 2 Average number of cash registers: 6 (i.e. 1 for every 488.8 m 2 ) Monthly sales Average sales per m 2 (million yuan) 16 14 12 1 8 6 4 2 18 16 14 12 1 8 6 4 2 Average sales per staff Average customer spending 3, 2,5 2, 1,5 1, 5 7 6 5 4 3 2 1 Cashier efficiency Gross margin (number of transaction/ machine /day) 3 25 2 15 1 5 1, 8, 6, 4, 2, Efficiency 2 (number of transaction/ (yuan/machine/day) (%) 19 18 17 16 15 14 13 Efficiency 1 (yuan/machine/day) 19
211 Q1 11 11 Average yoy % 1. Monthly sales (million yuan) 145.13 18.61 96.9 116.61 1.4% 2. Average sales per m 2 16 132 16 133 6.% 3. Average sales per staff 2,86 2,325 1,858 2,33-7.9% 4. Average customer spending 632.9 618.43 61.58 62.64 5.5% 5. Cashier efficiency 1 78,438 64,992 51,936 65,122-15.% (yuan/machine/day) 6. Cashier efficiency 2 248 221 144 24 3.9% (number of transaction/ 7. Gross margin (%) 15.48 16.46 16.24 16.6 15.48 8) % of damaged goods: n.a. 9) Inventory turnover days: n.a. 1) Average operating area per employee ( 員工配置 ): 23.28 m 2 /employee 2
211 Q1 V. Home electronics appliance chains Average operating area: 5,593 m 2 Average number of cash registers: 5 (i.e. 1 for every 1,118.6 m 2 ) Monthly sales Average sales per m 2 (million yuan) 45 4 35 3 25 2 15 1 5 2 15 1 5 Average sales per staff Average customer spending 8, 6, 4, 2, 2, 1,5 1, 5 Cashier efficiency (number of transaction/ 15 1 5 2, 15, 1, 5, (yuan/machine/ day) Efficiency 2 (number of transaction/ Efficiency 1 (yuan/machine/day) 21
211 Q1 11 11 Average qoq % 1. Monthly sales (million yuan) 26.17 15.33 2.19 2.56 8.2% 2. Average sales per m 2 (yuan/m 2 /day) 3. Average sales per staff 4. Average customer spending 5. Cashier efficiency 1 (yuan/machine/day) 6. Cashier efficiency 2 (number of transaction/ 151 88 12 12 8.% 6,2 3,527 4,798 4,782 28.4% 1,761.73 1,674.81 1,891.72 1,776.9-1.7% 112,927 66,154 9,1 89,694-31.8% 8 55 68 64-45.6% 7) % of damaged goods: n.a. 8) Inventory turnover days: n.a. 9) Average operating area per employee ( 員工配置 ): 39.95 m 2 /employee 22
211 Q1 About the Organizations The 中國連鎖經營協會 Founded in 1997, the (CCFA) is an official representative of the retailing and franchise industry in China. Currently, there are 9 enterprise members with 16, outlets, including domestic & overseas retailers, franchisers, suppliers, and relevant organizations. The total sales of China s Top 1 retail chain operators, which are part of the members of the CCFA, exceeded RMB 1.36 trillion in 29, with more than 137, stores in total. CCFA participates in policymaking and coordination, safeguards the interests of industry and members, provides a series of professional trainings and industry information and data for its members and establishes platforms for exchange and cooperation. Li & Fung Group 利豐集團 The Li & Fung Group is a Hong Kong-based multinational company with three distinct core businesses: export sourcing, distribution and logistics, and retailing. Founded in Guangzhou in 196, the Li & Fung Group achieved an annual turnover of over US$16 billion in 29. Today, the Li & Fung Group operates in some 4 countries and regions and employs over 35, people worldwide. One of its core competencies is Supply Chain Management (SCM). 利豐研究中心 is the research institute of the Li & Fung Group. It serves as a knowledge bank on China's economy, industries, logistics and distribution sector, with its research scope covering the whole spectrum of the entire supply chain, from ideas, production, distribution, retailing to consumers. It also offers research analyses and consulting services to colleagues and clients to assist them in their day-to-day decision-making. Copyright 211 and the (CCFA). All rights reserved. Though and CCFA endeavor to have information presented in this document as accurate and updated as possible, it accepts no responsibility for any error, omission or misrepresentation., CCFA and/or their associates accept no responsibility for any direct, indirect or consequential loss that may arise from the use of information contained in this document. Reproduction or redistribution of this material without and CCFA s prior written consent is prohibited. 23