Leading Beijing grocery operator Wumart announced full year revenue of RMB 17.3bn, an increase of 5.7% year on year. Consolidated gross profit rose 7.4%, reaching RMB 3.4bn.
Maintaining a competitive advantage in fresh categories
In a challenging environment for growth, Wumart's like-for-like growth of 2.1% has been aided by improvements to its fresh categories, an area of competitive advantage for the retailer. Developments have been wide ranging, including setting up more direct trading bases with suppliers as well as in-store improvements to presentation and range. The retailer's significant investment in staff training and management will provide a good foundation for long term growth in this area of the business.
Preparing for next stages of regional focus strategy
Opening 51 new stores, the total store network reached 538 by the end of 2012. Wumart continues to pursue a strategy of regional focus, prioritising leadership in a local market over establishing a national presence. At present Wumart's stores are concentrated in Beijing, with an increasing presence in Tianjin and Zhejiang and new province entry into Hebei in 2012. Almost doubling the distribution radius of its North China Distribution Centre will support further reaching store openings in the future. Other projects to ease expansion include supply chain efficiencies and enhanced IT support systems.
Want to know more?
Click here to download IGD's store report from our visit to one of Wumart's largest hypermarkets in Beijing.