Analysis of the Competition in China＇s Supermarket Sector

China＇s supermarket sector has been growing with a high rate for ten years. Relying on the advantages of new formats and adapting to the economic change of China, several China＇s supermarket companies have replaced the traditional department stores to become the leading player in retail industry of China. Although the interesting phenomenon shows that although these supermarket companies have the inherent problems of shortage of capital and weaknesses in management, their expansion is more emphasized on sizes and speeds. Being weak in management and over squeezing ,margin from suppliers that might lead their position to be vulnerable. Their market share is taken by different competitors, more notably by foreign giant retailers. Competition will become more fierce and complex. Merging, making joint ventures with foreign investors, expanding into chain and fuU-format retailer, hunting for skillful people would be the key strategic options to keep the sector＇s growth.