Auchan and Ruentex's joint venture in China, Sun Art Retail Group, has announced plans to develop its e-commerce operations.
In its H1 2016 results, where Sun Art announced a decline in its H1 profits by 3.4% to CNY1.46bn (£170m), the retailer announced plans to invest in its e-commerce operations. Its main online store, Feiniu.com, will benefit from a CNY1bn (£116m) investment in the coming two years and will be tightly linked with its physical stores, benefiting from its vast store network and strong supply chain. Sun Art expects its online business to break even in the fiscal year 2020-21.
A competitive environment
Bruno Robert Mercier, Sun Art's CEO and Executive Director commented: “In response to the dynamic retail market environment, the Group is consistently adhering to its strategies with prudent expansion, implementation of new formats, proactive development of our own brand products, as well as ongoing investment in E-commerce platforms, so as to enhance our differentiation and competitiveness…Moving forward, the challenges for the retail industry include the competitive environment driven by the rapid growth of E-commerce as well as market consolidation.”
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