Auchan China: more focus on ecommerce

Date : 14 November 2016

Sun Art Retail, which operates Auchan and RT-Mart banners in China, has reported a revenue increase of 4.4% to CNY77.3bn (US$11.3bn) for the first three quarters of 2016.

Scaling back on store expansion

The retailer continues to open more stores even though the trading environment in China is getting increasingly tough for bricks-and-mortar retailers, but the speed is slowing down. As of the end of September 2016, Sun Art opened 18 new stores, bringing its total store network to 427 hypermarkets and supermarkets, covering 216 cities cross 28 Provinces, autonomous regions, and municipalities. 24 new hypermarkets were opened in the same period last year.

In the next three years, the retailer plans to open 98 more hypermarkets, of which 88 were under construction.

Committed in ecommerce

Sun Art has two main ecommerce sites Feiniu and Fields, which serve the mass market and higher-end consumers respectively. As of 30 June 2016, Feiniu has over 16.3 million registered members with over 3.2 million active members within half a year. Feiniu is utilising 35 stores in 23 provinces as pick-up locations.

Fields achieved 50% growth in its gross merchandise volume in the first half of 2016.

The retailer aims to invest CNY1bn (US$150m) in e-commerce development over the next two years.