CP Lotus in Mainland turnaround
CP Lotus Corporation has turned around its Mainland China supermarket business, posting a profit for the first half.
The Hong Kong-listed group today reported a profit of RMB32.9 million which compares with a loss of RMB39.0 million in the same half last year.
Sales totalled RMB5.496 billion, up 1.1 per cent on a same stores basis, but down 10 per vcent due to the disposal of seven loss-making stores during the period.
CP Lotus owns 55 retail stores – all but one a hypermarket – with a total sales area of over 470,000 sqm.
Business improvements have included enhancing its merchandise mix, expanding its team of buyers sourcing local fresh produce and responding to growing middle class incomes by expanding its range of quality imported goods, such as olive oil, seafood and fruits.
In response to the growing popularity of baked goods in China, the company launched its central kitchen project for bakery products at the beginning of the year.
“We picked a store in the Shantou area as a pilot and supply to four stores within the area. The central kitchen enabled us to broaden the product categories including cake, bread and cookies; in addition, we were able to better control the quality and consistency of our products,” the company said in its half year report.