Sun Art Retail, a leading hypermarket operator in China, has announced its 2016 annual results, with its revenue rising 4.2% to RMB100,441m (US$14,592m) and profit up 6.7%.
Prudent Expansion and Innovation
During the year, the Group opened 38 hypermarkets, of which five were under the Auchan banner and 33 were under the RT-Mart banner. As of 31 December 2016, it had a total of 446 hypermarkets in China with a total gross floor area (“GFA”) of approximately 12.032 million square meters. The Group has identified and secured 79 sites to open hypermarkets in the coming year.
After one year of operation, the two small format stores “HiAuchan!” and “Lavia” has recorded strong progress, presenting an opportunity for the Group to open additional stores in smaller format in the future.
The Group has a total of 120 stores engaged in direct sourcing for their full range of vegetable products, while another 220 stores had part of their vegetable products directly sourced. The like-for-like sales growth in the vegetable section increased by more than 8% over last year.
Sun Art Retail’s private label brands have also enjoyed a remarkable performance. Last year, sales of “Actuel,” specialising in general merchandising goods surged by 88%.
Improving online to offline operation
Sun Art’s ecommerce site Feiniu’s operation keeps improving. Combining online and offline business, it leverages the advantage of physical stores and using feiniu.com as a platform to speed up and shorten the distance delivering goods to customers. For 2016, the GMV of Feiniu doubled, reaching RMB2,100m (US$305m), of which 29% was delivered out of stores. The loss of Feiniu is expected to be reduced in 2017.
Mr. Bruno Robert Mercier, the CEO and Executive Director of the Group commented, “Looking ahead to the new year, we will continue to strengthen our O2O business by “internetising” our mortar stores, and will also try to diversify the retail formats to satisfy our customer needs anytime and anywhere for any purpose.”
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