Retail News
- CRC becomes China's No.1 local supermarket operator following hypermarket takeover
Date: 30-Mar-2007 Sources: (People's Daily)
After taking over its rival Home World, China Resources Company (CRC) has become the nation's No.1 local supermarket operator in terms of sales, a CRC manager claimed.
CRC vice chairman and general manager Song Lin said his company has signed an agreement to purchase 100 percent of the equity of Home World Hypermarket Co., which operates 55 hypermarkets in 16 cities across the north, northwest and northeast regions of China, and chalked up sales of 5 billion yuan (about 625 million US dollars) in 2006.
CRC's turnover reached 37.85 billion yuan (about 4.7 billion U.S. dollars) in 2006, and the group claims to be the no.1 local supermarket in terms of sales, after taking over Home World Hypermarket.
Song did not disclose the amount of the transaction, but said the acquisition will give CRC significant market share in the northwest region, and make it a major player in Chinese supermarkets.
Analysts say that even though CRC has expanded significantly, it faces stiff competition, particularly from the foreign-owned Walmart and Carrefour chains.
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