Wal-Mart Stores Inc. and Carrefour SA sprang into China in the 1990s, disrupting the traditional ways of shopping. But now, local companies, and one conglomerate in particular, are showing how Chinese retailers aren't only playing catch-up but learning to outfox their foreign megastore rivals.

Take, for instance, the battleground of retail space, which is getting tighter in supply and more expensive in China's fast-growing cities.

China Resources Enterprise Ltd., 0291.HK +0.80% which operates 4,100 stores under 10 different retail brands, says it won space for one of its Ole' supermarkets in the shiny new Taikoo Hui mall in Guangzhou because it offered more than its rivals' single big-box concept. China Resources told mall developer Swire Properties Ltd. it could help populate a number of spots in the mall with its other brands