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 Plans China Store Expansion as First-Half Profit Rises

Don't Miss Out —
Follow us on:

Aug. 15 (Bloomberg) -- Sun Art Retail Group Ltd., China’s largest hypermarket operator, said it expects to add as many as 55 stores in China this year, continuing its expansion even as the Chinese economy slows.

The Shanghai-based venture between Taiwan’s RT-Mart and France’s Groupe Auchan SA expects to open a total 45 to 55 stores in China this year, Nelson Hsu, the chief financial officer of RT-Mart China, told reporters in Hong Kong today. Eleven of those stores have already been added.

Sun Art has steadily increased China profits by opening new outlets and tailoring its offerings to local tastes. It yesterday reported a 15 percent increase in net income to 1.58 billion yuan ($258 million) in the first half, higher than the average estimate of 1.56 billion yuan from three analysts compiled by Bloomberg.

China’s economy expanded 7.5 percent in the second quarter from a year earlier, the second straight deceleration.

“China economy will grow about 7.5 percent this year and we anticipate we’ll be in line with that growth,” Chief Executive Officer Bruno Mercier said at the press conference. He declined to comment on any possible impact from the slowing Chinese economy.

Sun Art had 284 hypermarkets in China as of 30 June, the company said in its statement yesterday. Sun Art is the biggest big-box retailer in China with 14 percent share of the hypermarket industry last year, according to Euromonitor International. China Resources Enterprise Ltd. and Wal-Mart Stores Inc. are tied for second place in the country each with a 11 percent share.

To contact Bloomberg News staff for this story: Liza Lin in Shanghai at llin15@bloomberg.net; Vinicy Chan in Hong Kong at vchan91@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@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.