Retail Industry Sees M&A Wave; Experts: Capital and Supply Chain Integration Lead to Oligopoly
Taiwan's retail industry is experiencing a wave of mergers and acquisitions. Experts believe that competition has shifted from traditional store expansion to 'capital and supply chain integration,' leading to market oligopolization. Factors such as 'succession gaps' are expected to drive continued M&A activities.
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- 📰 Published: May 4, 2026 at 12:06
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Central News Agency (Taipei, May 4, Reporter Ho Hsiu-ling, Chiang Ming-yen) - Taiwan's retail channels have seen a wave of consolidation in recent years, from Uni-President Group's acquisition of Carrefour to San Shang Go's acquisition of OK Mart, or the recent market discussion about Uni-President Chain Store investing NT$2 billion in the Japanese supermarket brand Taiwan LOPIA. Experts believe that competition in the retail industry has shifted from traditional store expansion to 'capital and supply chain integration.' Driven by implicit factors such as market oligopolization and 'succession gaps,' M&A activities in channels are expected to continue in the future.
These changes stem from a drastic transformation in the retail ecosystem.
'Because the retail industry no longer has boundaries,' said Chiu Kuang-lung, General Manager of San Shang Go, in an interview with Central News Agency. He stated that in the past, convenience stores, supermarkets, and hypermarkets each had their own positioning, but as online and offline gradually merge, 'these channels are all competing together, and channel positioning no longer exists.'
For example, consumers searching for products on their mobile phones can compare prices and delivery conditions across different channels simultaneously. Competition now includes not only price but also delivery speed and service experience.
He said that the current competitive environment is more intense than in the past. Since positioning is no longer important, all retailers are vying for consumers' limited disposable income, especially e-commerce, which is changing consumer habits by continuously lowering prices and shortening delivery times. 'Because there are 'crazy people' playing with you (physical channels),' he said, forcing the entire market to follow suit in this almost cost-regardless competition.
Chiu Kuang-lung believes that in an era of e-commerce pressure and price transparency, whoever can retain existing customers and increase visit frequency will be able to maintain their basic market share.
Cheng Kuei-yin, Assistant Professor at the College of Commerce, Chinese Culture University, believes that the M&A wave among large channels in Taiwan will not stop in the short term, as the retail industry has moved from 'store expansion competition' to 'capital, talent, systems, and supply chain integration' competition.
He further analyzed that channel consolidation in recent years has been driven by three forces. First, capital capability: whoever possesses capital has the opportunity to take over loss-making or transitioning channel assets. Second, whoever has talent in retail operations, logistics, store expansion, data, and procurement has the ability to reintegrate acquired channels. Third, channel operators are integrating upstream and downstream, controlling costs and enhancing bargaining power through scaled procurement, logistics efficiency, private brands, and member data.
'This year, San Shang Go announced the acquisition of OK Mart with the same logic,' he analyzed. On the surface, San Shang Go is buying OK Mart stores, 'but what San Shang Go is truly buying is the entry ticket into the convenience store market, logistics density, member contact points, and the possibility of future dual-brand integration.' San Shang Go acquired 100% equity of Lai Lai Supermarket for NT$125 million. After the transaction, both parties will maintain their existing brands and operating models. Cheng Kuei-yin pointed out that this means it may not be a complete integration in the short term, but rather first obtaining channel assets and market position.
Hung Ya-ling, Secretary-General of the Taiwan Chain Stores and Franchise Association, pointed out from an operational perspective that the focus of San Shang Go's acquisition is not to expand outlets but on 'convenience store operational know-how.' Through integrating OK, San Shang Go has the opportunity to bridge the gap with younger customer segments and establish a 'third or fourth place' value within the convenience store system.
Furthermore, Cheng Kuei-yin also believes that channel consolidation should not be simplified as 'monopoly' to define M&A, but rather viewed as channels gradually moving towards 'oligopolization' and 'concentration of channel power.' In Taiwan, where diverse competition still exists among convenience stores, supermarkets, hypermarkets, e-commerce, and delivery platforms, large groups expanding their territory through M&A will indeed increase their control over suppliers, rent, labor, and logistics costs.
He pointed out that future channel M&A will not stop, but the targets of M&A will shift from 'pure store expansion' to 'complementing the ecosystem.'
Cheng Kuei-yin analyzed that a less publicly discussed implicit factor is the 'succession gap.' After the founding generation of some medium-sized channels gradually retires, the second generation may not have the willingness or ability to take over high-intensity retail operations, leading companies to adopt conservative strategies or even choose to sell or introduce capital for integration. To some extent, this has also driven the M&A wave. (Edited by Lin Shu-yuan, Yang Lan-hsuan) 1150504
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These changes stem from a drastic transformation in the retail ecosystem.
'Because the retail industry no longer has boundaries,' said Chiu Kuang-lung, General Manager of San Shang Go, in an interview with Central News Agency. He stated that in the past, convenience stores, supermarkets, and hypermarkets each had their own positioning, but as online and offline gradually merge, 'these channels are all competing together, and channel positioning no longer exists.'
For example, consumers searching for products on their mobile phones can compare prices and delivery conditions across different channels simultaneously. Competition now includes not only price but also delivery speed and service experience.
He said that the current competitive environment is more intense than in the past. Since positioning is no longer important, all retailers are vying for consumers' limited disposable income, especially e-commerce, which is changing consumer habits by continuously lowering prices and shortening delivery times. 'Because there are 'crazy people' playing with you (physical channels),' he said, forcing the entire market to follow suit in this almost cost-regardless competition.
Chiu Kuang-lung believes that in an era of e-commerce pressure and price transparency, whoever can retain existing customers and increase visit frequency will be able to maintain their basic market share.
Cheng Kuei-yin, Assistant Professor at the College of Commerce, Chinese Culture University, believes that the M&A wave among large channels in Taiwan will not stop in the short term, as the retail industry has moved from 'store expansion competition' to 'capital, talent, systems, and supply chain integration' competition.
He further analyzed that channel consolidation in recent years has been driven by three forces. First, capital capability: whoever possesses capital has the opportunity to take over loss-making or transitioning channel assets. Second, whoever has talent in retail operations, logistics, store expansion, data, and procurement has the ability to reintegrate acquired channels. Third, channel operators are integrating upstream and downstream, controlling costs and enhancing bargaining power through scaled procurement, logistics efficiency, private brands, and member data.
'This year, San Shang Go announced the acquisition of OK Mart with the same logic,' he analyzed. On the surface, San Shang Go is buying OK Mart stores, 'but what San Shang Go is truly buying is the entry ticket into the convenience store market, logistics density, member contact points, and the possibility of future dual-brand integration.' San Shang Go acquired 100% equity of Lai Lai Supermarket for NT$125 million. After the transaction, both parties will maintain their existing brands and operating models. Cheng Kuei-yin pointed out that this means it may not be a complete integration in the short term, but rather first obtaining channel assets and market position.
Hung Ya-ling, Secretary-General of the Taiwan Chain Stores and Franchise Association, pointed out from an operational perspective that the focus of San Shang Go's acquisition is not to expand outlets but on 'convenience store operational know-how.' Through integrating OK, San Shang Go has the opportunity to bridge the gap with younger customer segments and establish a 'third or fourth place' value within the convenience store system.
Furthermore, Cheng Kuei-yin also believes that channel consolidation should not be simplified as 'monopoly' to define M&A, but rather viewed as channels gradually moving towards 'oligopolization' and 'concentration of channel power.' In Taiwan, where diverse competition still exists among convenience stores, supermarkets, hypermarkets, e-commerce, and delivery platforms, large groups expanding their territory through M&A will indeed increase their control over suppliers, rent, labor, and logistics costs.
He pointed out that future channel M&A will not stop, but the targets of M&A will shift from 'pure store expansion' to 'complementing the ecosystem.'
Cheng Kuei-yin analyzed that a less publicly discussed implicit factor is the 'succession gap.' After the founding generation of some medium-sized channels gradually retires, the second generation may not have the willingness or ability to take over high-intensity retail operations, leading companies to adopt conservative strategies or even choose to sell or introduce capital for integration. To some extent, this has also driven the M&A wave. (Edited by Lin Shu-yuan, Yang Lan-hsuan) 1150504
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The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.