The growth in the number of convenience stores in Shanghai will slow this year after solid increases in the past two years. Store operators shelved aggressive expansion plans to fine tune operations amid fierce market competition.

　　Shanghai Alldays Convenience Store Co Ltd, a major operator, said it will not open any stores this year after a sharp expansion last year.

　　"We opened 500 stores in Shanghai last year, making the total number at 1,000 at year's end," said Ni Qingdi, an official with Alldays. "This year the company will mainly adjust its stores and operations, and hopefully, the number of Alldays stores will remain at about 1,000 by the end of this year."

　　One of its major tasks is to franchise some stores to private investors to better manage the stores and save operational costs.

　　"Franchise is the development trend for convenience stores; eventually the company hopes to franchise 80 percent of its total stores," Ni said.

　　Shanghai Buddies CVS Co Ltd said it will open about 100 stores this year, compared with last year's 170 new stores.

　　"The expansion of Shanghai's convenience stores has outpaced customers' demand in some areas," said Wang Jinlong, president of Buddies. "Adjustment will be the theme for the year as store operators can't bear long-time losses and keep opening new and unprofitable stores."

　　He said his firm will continue building up the Buddies brand this year and develop up to 100 franchise stores to upgrade services.

　　Stiff competition in Shanghai's convenience store market in the past three years has apparently hampered the entry of global giants such as 7-Eleven.

　　The world's largest convenience chain decided to tap the northern market of Beijing, Tianjin and Hebei Province first, and won't test the Shanghai market before next year.

　　Shanghai has 3,200 convenience stores by the end of last year, up from about 1,700 at the end of 2002, according to the retail administration department of Shanghai Economic Commission. Most of the stores are losing money, they said.