Suning in 60-store deal
Suning.com has said it is taking over the right to operate more than 60 convenience stores from Hong Kong conglomerate Fung Retailing's affiliate Convenience Retail Asia Ltd to expedite expansion in southern China.
Fung Retailing opened its first OK convenience store in Guangzhou in 2002 and the chain has been offering hot food and beverages under its home brand "Hot & In."
Convenience stores that normally only serve as offline outlets are nowadays being transformed into integrated sites by combining mobile technologies and on-demand delivery to nearby households.
The OK stores in Guangzhou also have strong resources in terms of import goods and would also complement Suning’s supply chain capability in southern China.
The move comes after the retailer’s 4.8-billion-yuan (US$695.7 million) acquisition of an 80 percent stake in Carrefour China in June as the retailer is leveraging its offline presence, especially in small format stores to serve local communities.
Bian Nong, president of Suning’s consumer goods business group, said the company is eying integration with local stores' capabilities in merchandising, supply chain and regional operation with Suning’s existing offline network.
Suning has around 6,000 neighborhood community stores in more than 70 Chinese cities.