Chinese hypermarket chain flourishes
Chinese hypermarket operator Sun Art Retail has reported robust profits for the six months to June 30.
Sun Art Retail, a joint venture between French retailer Groupe Auchan SA and Ruentex Group of Taiwan, has 240 hypermarkets in China, trading under two banners – Auchan and RT-Mart.
It generated a 1.3 billion yuan (US$215.5 million) net profit, 75.1 per cent up from a year earlier, in the half year on turnover up 14.4 per cent to 39.4 billion yuan (US$6.2 billion). The increase was attributed to the continuous business expansion with the opening of new stores and the same store sales growth.
Same store sales grew 4.3 per cent driven by sales increases through promotional activities.
The strong performance shows that China’s economic downturn hasn’t dampened the retailer’s growth, although it impacted consumer confidence, the company said.
Sun Art Retail now plans to press ahead with the opening of new stores in the remaining months of this year, while developing resources for further new stores in the future. In line with the steady expansion of its network, it identified and secured 155 sites to open hypermarkets through lease or land acquisition.