Sun Art to expand

Chinese hypermarket operator Sun Art Retail Group plans to expand into e-commerce and boost store numbers as first half profit rose 15 per cent to 1.58 billion yuan (US$258 million).

During the period, Sun Art established Uitox E-commerce, which will be one of the platforms used to develop e-commerce business.

CEO Bruno Mercier said the group will actively explore different business models for e-commerce to develop future sources of profit and provide customers with convenient ways to shop.

Sun Art’s push into e-commerce comes amidst a boom in online food shopping following food safety scares in China.

The group also plans to expand its bricks-and-mortar stores with 45 to 55 new stores to be opened this year. Eleven of those opened in the first six months of the year.

“China’s economy will grow about 7.5 per cent this year and we anticipate we’ll be in line with that growth,” said Mercier.

Sun Art operates 284 hypermarkets under banners Auchan and RT-Mart. According to Euromonitor, Sun Art held 13.6 per cent of China’s hypermarket sector in 2012, followed by China Resources Enterprise and Walmart with 11 per cent each.

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