China's sales of fast moving consumer goods, such as packaged food, beverage and cosmetics, recorded the highest annual growth in three years in 2017 at 4.3 percent, with online sales volume rising 29 percent, according to Kantar Worldpanel.
Retailers are adopting new methods to catch up with the digital transformation, with the combined sales volume of hypermarket, supermarket and convenience stores rising 2.6 percent, from 1.6 percent growth a year ago.
Most multinational and local retailers have strengthened their foothold with new store openings or business formats through tie-ins with Internet companies.
Sun Art Retail Group, which runs Auchan and RT Mart malls, remains the biggest player by sales, lifting its market share to 8.4 percent from 8.1 percent a year ago.
Yonghui recorded the fastest growth with new formats such as Super Species and community stores. It overtook Carrefour as the fourth largest retailer, with a market share of 3.3 percent.
About 60 percent of Chinese families have purchased fast moving consumer goods online, and in Beijing, Shanghai, Guangzhou and Chengdu, that figure is nearly 70 percent.