Sun Art satisfies
Chinese hypermarket operator Sun Art Retail Group has found expanding into lower tier cities a lucrative move.
The listed retailer yesterday reported a seven per cent rise in profit for the nine months to September 30 as it continued its expansion drive into lower-tier cities.
Its share price gained nearly one per cent as a result, twice the day’s overall market growth.
Sun Art is a joint venture between Taiwanese company Ruentex Group and the French retailer Groupe Auchan. It operates under two brands – Auchan and RT-Mart.
In a statement, the company said its net profit reached 2.34 billion yuan (US$382 million) in the nine month period on sales of 70.24 billion yuan – up from 65.69 billion yuan year-on-year.
Meanwhile, the company is continuing to invest in online growth after launching a website in January to compete with China Resources Enterprise- and Wal-Mart Stores-run online store Yihaodian.