Chinese supermarket chain New Hua Du Supercenter has acquired a vending-machine company just weeks after Alibaba and Auchan launched self-service convenience stores.
Based in Fujian, the chain says it has signed an equity-swap agreement with Beijing Ubox Online Technology Corporation. Under the deal, Ubox, which runs more than 57,000 vending machines – more than any other similar company – will be absorbed into New Hua Du, reports Caixin Global.
New Hua Du has a market value of RMB5.7 billion (US$850 million), smaller than its new subsidiary Ubox, which is valued at RMB6.5 billion. New Hua Du’s profit last year rebounded to RMB54 million from a loss of RMB373 million a year earlier, driven in part by the three e-commerce companies it acquired.
“The acquisition comes at a time when staffless retail is hot,” says Haitong Securities analyst Wang Liting. “The deal will enable integration between supermarkets and smart vending machines.”
After Amazon.com launched its Amazon Go self-service shop last year, Chinese companies have taken up the staffless shop concept with Alibaba Group Holding opening Tao Cafe in Hangzhou and Groupe Auchan introducing BingoBox in Shanghai.
Wang says the vending-machine market has significant potential in China. Ubox’s profit last year more than doubled to RMB81 million.
* Photo: Visual China.
