VIPshop buys Chinese outlet malls
Discount e-commerce platform Vipshop has acquired a chain of Chinese outlet malls.
The online business has paid RMB290 million (US$42 million) for Shan Shan, extending its offline footprint.
The Tencent and JD-backed site has been making strong moves to trade offline since opening a store in Beijing last October, and has gone on to launch retail outlets in Guangzhou, Changsha, Shenyang, Tianjin, and Hefei. The new acquisition adds five outlet malls to VIPShop’s network in Taiyuan, Harbin, Zhengzhou, Nanchang, and Ningbo, with five more outlets in the works.
“This represents another milestone in our efforts to explore online and offline integration in our core business,” said Vipshop founder Eric Shen. “Through this highly strategic transaction, we will gain presence in the offline outlet business in China, which further enhances our ecosystem and fortifies our leading position in China’s discount retail segment.”
Vipshop’s first 2019 financial quarter saw it take in RMB21.3 billion (US$3.1 billion) in revenues, providing a net income of RMB872.3 million ($127 million).