China Resources Enterprises Archives - Inside Retail Asia

[:en]CRE suffers profit slump [:zh]华创遭受利润下滑

[:en]China’s slowing economy has led China Resources Enterprises’ first quarter earnings into a 32 per cent decline. CRE says profit in the three months to March decreased to HK$349 million ($45 million) from HK$512 million a year earlier. Nevertheless, the company says it is optimistic it can bounce back to competitiveness. It is combining its more than 4600 stores with Tesco’s 134 stores and 19 shopping malls in mainland China through a joint venture, which aims to become the le…

Tesco pins hopes on Asia

British retailer Tesco hopes its Asian investments will help its global operations bounce back. The challenging consumer environment in Europe has affected Tesco’s trading profit which dropped to 3.31 billion pounds (US$5.54 billion) in the year to February. “Our performance in the (last) year was not where we had planned it to be,” Tesco said in its earnings statement. “In the UK, we faced a weaker and increasingly competitive market in the second half,” said the group. However, Tes…

Supermarket giant’s profit slides

Hong Kong-based supermarket operator China Resources Enterprises has seen its net profit for 2013 slide 52 per cent, dragged down by its weaker retail division. CRE said net profit dropped from HK$3.95 billion in 2012 to HK$1.9 billion (US$246 million) in 2013. “China’s economy saw slower growth momentum and faced challenges throughout the year under review,” said CEO Hong Jie. Rising labor costs have hurt the retail business, which declined 65 per cent. The company operates more than…

CR Vanguard to expand

Chinese supermarket chain CR Vanguard plans to accelerate its expansion in East China this year. CR Vanguard currently has 351 stores in East China. This year, it plans to open another hypermarket in Hangzhou as well as 62 VanGO convenience stores. It will also open eight additional hypermarkets and 50 convenience stores in Zhejiang, Jiangsu, and Jiangxi. CR Vanguard is owned by China Resources Enterprises which has agreed to combine its China stores with Tesco’s through a joint venture…

Chinese supermarket plans expansion

Chinese supermarket chain Yonghui will open 60 new stores this year. Its expansion plan will continue over the next three to five years as it is targeting to open 40-50 stores during the period. Last year, Yonghui opened 46 stores, mostly in mature markets like Guangzhou, Shanghai, Beijing, Chongqing and Fujian. As at January 1, the retailer has opened 293 stores across China. Yonghui is not alone in its expansion efforts in the nation. Its foreign rival Walmart will accelerate developm…

Sam’s Club plans China expansion

Walmart plans to expand its Sam’s Club chain in China. Sam’s Club, which opened its first store in China in 1996, acts like a purchasing agent for its members. It offers famous-brand merchandise for both business and personal use. Walmart China CEO Greg Foran believes that there is a strong need to open more Sam’s Clubs in the market. He said the US, with 300 million people, has 550 Sam’s Club while China, with 1.34 billion people, has just 10 currently. Foran said Walmart plans to op…

CP Lotus sale scrapped

CP Group has scrapped plans to sell its 36 CP Lotus supermarket stores in China to Wumart. In October, the Thai company reached a deal with Wumart to sell its stores in Beijing, Shanghai and most provinces in China, excluding South China’s Guangdong Province and Central China’s Hunan Province, for HK$2.3 billion (US$302 million). The two also discussed a share swap in which Wumart would buy 10 per cent of CP Lotus for HK$548 million (US$70.7 million) and CP Lotus would buy 14 per cent …

Sun Art’s profit surges

China’s leading hypermarket operator Sun Art Retail Group has reported a 26 per cent jump in profit for the nine months to September. Sun Art, which operates hypermarket brands RT-Mart and Auchan, said net profit rose to 2.18 billion yuan ($357.8 million) on 11.7 per cent revenue growth. The retailer has seen its third quarter net profit grow 70 per cent to 604 million yuan. Competition in China’s hypermarket sector is becoming tougher and has led retailers to consolidate. British retai…

CP Lotus sells China stores

Chinese supermarket operator Wumart has agreed to buy 36 CP Lotus stores in China. Thai company CP Lotus, a unit of Charoen Pokphand Group, is selling its stores in Beijing, Shanghai and most provinces in China, excluding South China’s Guangdong Province and Central China’s Hunan Province, for HK$2.3 billion (US$302 million). The deal is part of a share swap that involves Wumart buying 10 per cent of CP Lotus’ shareholdings for HK$548 million (US$70.7 million) and CP Lotus acquiring 14 per…

Walmart eyes brand acquisitions

Walmart says it wants to grow its China business by acquiring brands. Walmart, like its foreign peers, is struggling to expand in China as it faces tough competition from local retailers. The retailer, with 398 stores, trails Chinese retailer Sun Art Retail Group, with 284 stores. Last year, Walmart said it would open 100 stores in China by 2015, far below its annual opening pace of 50 to 60 stores of previous years. But, Walmart plans to up its ante in the world’s second largest econom…

Walmart committed to China rollout

Retail giant Walmart is to add new stores in the competitive grocery market of China. The new locations include Zhuahai, Huizhou, Yunnan and Fujian. Walmart is also slated to open in Shenzhen before the year ends. The new stores are part of the 30 it plans to open in China this year. The retailer has 370 stores across China since it entered the nation in 1996. Walmart closed three stores in April but reaffirmed its commitment to the market, promising to make new investments to fulfil…

It’s definite: Tesco, CRE in JV

British retailer Tesco will pay $558 million to own 20 per cent of a joint venture with China Resources Enterprises (CRE). The JV, flagged two months ago, will combine Tesco’s 134 Chinese stores with CRE’s 2986 stores. It will also merge Tesco’s retail practices, international sourcing and digital capabilities with CRE’s local knowledge and brand to create a business with sales of some £10 billion. Tesco CEO Philip Clarke said the JV will help the company move more quickly to profitabi…