CHINA: Profits jump at Sun Art Retail
Sun Art Retail Group, the Chinese retailer, saw its profits climb more than 15% in 2013 as new stores boosted sales and the company's buying negotiations helped margins.
Net profit was up 15.2% at CNY2.78bn (US$452.3m), the local venture of French retail giant Auchan said. Profit from operations increasing 17.9% to CNY4.15bn.
The retailer, which at the end of the year had 323 hypermarkets across China, posted a 10.7% rise in turnover to CNY86.2bn. Same-store sales were up 2%.
Sun Art said its gross profit margins rose thanks to "improvements in product mix and further purchasing common negotiations". The hypermarket operator, which runs stores under the Auchan and RT-Mart banners, "negotiated together 40% of the group's buying turnover in 2013".
The retailer opened 50 stores last year. It also set up an e-commerce arm last year and a website, www.feiniu.com, opened in January.
Citing data from Euromonitor, Sun Art said its share of the market increased 0.5 percentage points to 14%.
CEO Bruno Mercier said: "We will continue to maintain steady new store expansion by leveraging the opportunities arising from accelerating urbanisation and prudently selecting the location of new stores to ensure their quality.
Focused on the consumer needs, we will improve our product mix, develop aggressively our own brand products, increase the proportion of direct procurement, and impose strict product quality and safety controls in particular on all food products."
He added: "We will continue to improve and develop our e-commerce business, enhance our customers shopping experience and explore new shopping channels."
Through Auchan and RT Mart, Sun Art Retail Group will continue with its dual-brand development strategy, which focuses on hypermarkets in China. The company plans to open at least 50 new outlets over ...
Auchan Polska Sp zoo wishes to focus its operational strategy on offering the lowest possible prices, providing customers with broad product assortment and the highest quality customer service. With r...
The key directions for Auchan development in France are introduction of more Drive stores and the development of Auchan’s convenience stores – A2pas. This is due to a predicted decline of hypermarkets...
After the successful integration of numerous hypermarkets formerly operated under the Cora banner during 2013, Auchan has been able to strengthen its position through entering into partnerships with l...
- Premier Foods CEO expects UK supermarket rebound
- Why Post is increasing its exposure to cereal
- Briefing: The risks and rewards of e-tail in China
- Unilever must "speed" response to consumer trends
- just-food's pick: Natural Products Expo top 10
- Post Holdings strikes deal to acquire MOM Brands
- Hershey to acquire meat jerky firm Krave
- Up & Go breakfast drinks set for UK launch
- Crisp maker Sibell acquires Spain's Celigueta
- Hershey linked to takeover of jerky maker Krave
- 10 Key Trends in Food, Health and Nutrition 2015
- The Sugar Backlash and its Effects on Global Consumer Markets
- Unilever - Strategy and SWOT Report
- The Future of Retailing in the UK to 2017
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits