China: CRE reports retail growth

Date : 21 March 2013

China Resources Enterprise (CRE) has reported consolidated group sales growth of 14.6% for 2012, with retail division turnover up 19.1%. 

Growth at retail division, food division sales down

In the retail division, same store sales growth was up 4.1% year-on-year, driven by rising prices of consumer goods, new store openings and a contribution from the acquired Jiangxi Honkelong Department Store Investment Company. CRE's retail division continued to enter new regions in 2012 - Sichuan, Fujian and Hainan - and opened convenience stores at metro stations in Hangzhou, Zhejian Province. 

The group ended the year with more than 4,400 stores in  China, around 81% of which are company-owned.  Future expansion will concentrate on third and fourth-tier cities, as well as counties, towns and villages.  Turnover for the food division was down 3.1% in 2012, but attributable profit was up 19.1%.   

Outlook: targets further market share growth

CRE chairman, Mr Chen Lang, said: "Looking ahead to 2013, we expect the operational environment for the retail industry to remain challenging. However, we are optimistic about the long-term development of China's retail market as the central government's new urbanisation strategies promulgated in its '18th National Congress' will drive domestic consumption. We will continue to look for opportunities to team up with other market leaders where circumstances allow us to create synergies, especially for our retail and food divisions.

"We will adhere to our commitment to further developing market share for each of our consumer goods businesses while leveraging our economies of scale to enhance operational efficiency, so as to generate higher value to customers and investors over the longer term."

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