Hong Kong-headquartered Dairy Farm is to sell its Wellcome Taiwan grocery retail business to Carrefour, with settlement later this year after regulatory approvals have been granted.
The deal – worth about €97 million – includes about 224 stores and warehouses, along with some property assets. Wellcome Taiwan’s turnover last year was approximately €390 million.
The business currently has 199 Wellcome stores with an average sales area of 420sqm – and 25 Jasons, with an average sales area of 820 sqm.
The Dairy Farm stores trading under the Wellcome banner will be converted to its Market format, and those trading under the Jason’s brand will be converted to the Carrefour format.
“Dairy Farm believes this change of ownership will set the business up for future growth and prosperity, building on Wellcome’s strong sales momentum over the past 12 months following the successful implementation of its price reinvestment campaign and increasing customer loyalty,” the Hong Kong company said in a statement.
“This strengthened network represents greater opportunities for our team members as well as better service and value to our customers.”
A spokesperson for Dairy Farm told Inside Retail Asia that the company was committed to its remaining major investment in Taiwan, Ikea.
“Ikea Taiwan remains very much part of Dairy Farm’s portfolio. Through the Ikea brand, Dairy Farm is committed to delivering a unique home furnishing and Swedish food experience to our customers in Taiwan.”
Meanwhile, the MD of Wellcome Taiwan, Laurent Piazza, says the sale is a testament to the hard work and determination of the Dairy Farm team to offer the best to its customers.
“By bringing these businesses together, team members and customers will benefit from being served by a larger group that can use their combined strength and scale to improve quality, service, and price competition.
“We have complete confidence in the future success of the business and believe, by bringing these businesses together, we have created a strong future for the team and a better shopping experience for our customers.”
Carrefour currently operates 137 stores in Taiwan, including 69 under its Market banner. The group posted net sales of €1.968 billion last year and posted pre-tax earnings of €209 million.