Chinese hypermarket operator Sun Art Retail Group, the local venture of French retailer Auchan, has booked a jump in half-year profits.
Sun Art, which has 240 hypermarkets across China, booked a 75.1% rise in net profit to CNY1.37bn (US$215.6m) for the six months to the end of June.
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Profit from operations was 22.9% higher at CNY2.04bn on the back of higher sales and as the retailer benefited from economies of scale.
Turnover increased 14.4% to CNY39.42bn as it opened ten hypermarkets under the RT-Mart banner and saw a 4.3% increase in same-store sales.
The growth in same-store sales was slower than in the first half of 2011, when underlying sales increased 12%. China’s economy, though growing at 7.8% in the first half of this year, has slowed. Sun Art said the slowdown in economic growth and international uncertainty had “considerably impacted” consumer confidence in the short term.
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By GlobalData
