Chinese department store Wangfujing has consolidated with rival Printemps China to become the nation’s third largest department store operator.
Wangfujing has been granted government approval to take a minority stake of 39.53 per cent in Printemps and is planning to make a tender offer to acquire the remaining share in its former rival.
The acquisition will position Wangfujing, which has 30 stores, as China’s third biggest department store operator after Wanda and Parkson.
Printemps China, which currently has 21 stores, is reported to have been suffering from strict competition. Its net profit gradually declined in the past three years – 341 million yuan, 313 million yuan and 156 million yuan in 2010, 2011 and 2012, respectively.
Some say the consolidation signals that the Chinese department store industry is reaching its maturity.