Sun Art profit jumps
China’s largest hypermarket operator Sun Art Retail said net profit for the year to December 31 rose 51 per cent to 2.4 billion yuan.
The retailer, which operates RT-Mart and Auchan hypermarkets, reported a turnover from sales of goods worth 75.9 billion yuan, up 14.1 per cent from 66.5 billion yuan in 2011. The increase was primarily attributable to expansion with the opening of new stores and the same store sales growth.
The group opened 43 stores in China last year and it says it is continuously looking for opportunities to support its expansion strategy. It had identified and secured 157 sites to open hypermarket complexes, of which 101 were under construction, ensuring sufficient sites for the expansion in the next three years and laying a solid ground for the development in the medium term.
Sun Art Retail, a joint venture between Taiwan’s Ruentex Group and France’s Groupe Auchan, has 273 hypermarkets in China. The retailer is confident the hypermarket sector in China will continue to grow as the government’s plans for urbanisation and household income growth is expected to fuel long-term growth in domestic consumption.