Hutchison Whampoa-owned supermarket chain ParknShop plans to continue expanding despite its pending sale.

ParknShop, which is for sale for $4 billion, says it will open 36 new stores this year.

However, analysts are skeptical that the plan is financially sound.

According to CIMB-GK Securities analyst Yeo Zhi Bin, sales should be grown not by store openings, but by increasing productivity per store considering Hong Kong is already a mature market.

The supermarket chain has already opened 16 stores in the first half of the year.

ParknShop, which operates 345 stores in Hong Kong, mainland China and Macau, faces stiff competition from fellow supermarket giant Wellcome.

Eight companies have expressed their interest to buy the chain during the initial bidding on August 16, including Japanese retailer Aeon, China Resources Enterprise, Lotte Group, TPG Group, Walmart, KKR and Australian retailers Woolworths and Wesfarmers.

Hutchison Whampoa’s owner Li Ka-shing is selling ParknShop to exit the grocery market, which he described as “mature and growing slowly”.