Suning in ¥4.8 Billion Acquisition of Carrefour China

By Jack Douglas, June 26, 2019

0 0

Retail giant has announced that it has come to an agreement with Carrefour China for an 80% stake in the groceries chain.

The acquisition is reported to have set back RMB4.8 billion in cash, or USD685.7 million, as the retailer was keen to capture the French chain that made net sales of RMB28.47 billion last year.

With 210 hypermarkets and 24 convenience stores, Carrefour China has enjoyed exponential growth since its launch in 1995, and is looks likely to continue to grow as it joins Suning’s empire of 8,881 stores and China’s third-largest e-commerce platform.

Nanjing based Suning has recently been consolidating its reach of brick-and-mortar neighbourhood stores, called Suning Xiaodian. The idea behind these ‘small stores’ is for people all over the nation to purchase high quality, daily goods. All of which means Carrefour’s produce can now be dispatched to a much wider customer base.

The deal will see Carrefour retain two out of seven seats on the Carrefour China's Supervisory Board, but it remains unclear as to how the grocer will handle its ongoing partnership with WeChat.

This move comes after Suning acquired 37 Wanda department stores at the start of the year, extending the continual growth of groceries and other consumer goods coming into China that has recently seen German supermarket Aldi open stores in Shanghai and American wholesaler Costco poised to open one in August.

[Cover image via Pixabay]

more news

China Restricts Citizens from ‘Non-Essential’ Foreign Travel

China promises to double down on the pursuit of 'zero-COVID' and aims to further restrict international travel and curb the small number of imported cases coming in.

Triumph and Tribulation for China’s Foreign-born Winter Athletes

Freestyle skiing superstar Eileen Gu's Winter Olympic experience has contrasted with the likes of figure skater Zhu Yi.

Foreign Actor Nationality Now Required in China Movie Credits

New regulations compel movies to show foreign actors nationality.

Starbucks Closes Stores For Using Expired Ingredients

Two Starbucks stores in Wuxi close after using expired ingredients.

Epermarket – The Grocery APP You Didn’t Know You Needed

Need Imported Groceries at Great Prices? Then Look No Further

Beijing Bans Foreign Textbooks in Schools

Beijing has prohibited the use of foreign textbooks in classrooms for primary and junior high school students.

AmCham South China President on Foreign Direct Investment Trends

We reached out to Dr. Harley Seyedin to learn about Guangzhou's cross-border e-commerce developments and FDI trends.

Didi Booted From Chinese App Stores, 'National Security' Cited

DiDi said that users who've already downloaded the app will have no issue ordering a ride.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at thatsonline for events, guides, giveaways and much more!

7 Days in China With

Weekly updates to your email inbox every Wednesday


Download previous issues

Never miss an issue of That's Magazines!

Visit the archives