Suning has signed a deal to purchase an 80% stake in French retailer Carrefour’s Chinese operations for €620m ($677.22m).
In June, the Chinese retailer announced the deal that follows its recent acquisitions, including Dia China and Wanda Department Stores. The company noted that it is expanding its brick-and-mortar portfolio for its full-scenario retail model.
Suning Holdings Group chairman Zhang Jindong said: “This is a key step in Suning’s smart retail plan. Carrefour’s FMCG experience and supply chain capabilities can be integrated with Suning’s full-scenario retail model, solid logistics network and advanced technology.
“With our smart retail capabilities, Suning can transform the Carrefour stores into fully integrated online-and-offline supermarkets to meet evolving consumer demands.”
Jindong together with 20 executives outlined a business development plan for Carrefour China.
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He also announced the appointment of new CEO for Carrefour China business.
Jindong revealed the company’s plans to open 300 new stores under the Carrefour brand in tier 1 to tier 3 cities of China over the next five years.
Carrefour’s brand and operations in China will remain independent. It will leverage Suning’s capabilities to gain entry into the lower-tier markets.
Suning has integrated its home appliance section into over 200 Carrefour stores and plans to add other sections such as mother-infant, sports retail and movie theatres.
Carrefour China currently operates 210 hypermarkets and 24 convenience stores across 22 provinces and 51 large and medium-sized cities.