Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Sun Art Profit Rises 51 Percent in 2012 on China Store Openings

March 17 (Bloomberg) -- Sun Art Retail Group Ltd., China’s largest hypermarket operator, said profits rose 51 percent last year as it expanded operations.

Net income jumped to 2.41 billion yuan ($388 million) from 1.6 billion yuan in 2011, the company said in a statement to the Hong Kong Stock Exchange today. This beat the mean estimate of 2.31 billion yuan by five analysts surveyed by Bloomberg. Sales rose 14 percent to 77.9 billion yuan.

Sun Art, a venture between Taiwan’s RT-Mart and France’s Groupe Auchan SA, has gained market share in China’s 507 billion yuan hypermarket industry even as rivals from Carrefour SA to Tesco Plc have struggled to expand in the world’s second-biggest economy. The Shanghai-based retailer’s sales are expected to double between 2012 and 2017, analysts at HSBC Holdings Plc said in a Feb. 27 report.

The company’s store locations and scale make it best placed “to benefit from the macro trends like urbanization, an economic rebound and the rising spending power in second and third-tier cities,” Hong Kong-based HSBC analysts Lina Yan and Erwan Rambourg wrote.

The retailer, which operates RT-Mart and Auchan brand stores in China, overtook Carrefour in 2007 as the biggest operator of hypermarkets by tailoring American-style megamarts to the Chinese consumer.

The Auchan Group had a 13.6 percent market share in 2012 among operators of hypermarkets in China, Euromonitor’s data showed. This compares with 10.9 percent for Wal-Mart Stores Inc. and Carrefour’s 6.9 percent.

To contact the reporter on this story: Liza Lin in Shanghai at llin15@bloomberg.net

To contact the editor responsible for this story: Anjali Cordeiro at acordeiro2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.