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The two-year-old explosion in the number of conveniences stores in Shanghai is set to slow down in 2004.

One major chain, Shanghai Alldays, says it will not open any more stores this year after a sharp expansion last year.

Moreover, stiff competition in Shanghai's convenience store market in the past three years has scared off foreign giants like 7-Eleven, which has decides to tap the northern market of Beijing, and Tianjin first.