Suning buys majority stake in Carrefour China for £545m
French retail giant Carrefour has sold a majority stake in its Chinese business to Suning for €620m (£545m).
The Chinese retailer has bought 80 per cent of the firm’s share capital as it attempts to secure growth in online food sales and expand its number of physical stores.
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Carrefour China will open 300 new stores in major cities over the next five years, more than doubling the business’s presence in the country.
The brands will remain independent, but Suning home appliance sections will be integrated into more than 200 Carrefour stores from tomorrow and other assets, including sports retail and cinemas, will be added gradually.
Suning vice president Tian Rui has been appointed as chief executive of the Carrefour China.
Suning 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.
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“With our smart retail capabilities, Suning can transform the Carrefour stores into full integrated online-and-offline supermarkets to meet evolving consumer demands.”
Carrefour China has 210 supermarkets and 24 convenience stores across 22 provinces and 51 cities.
Main image credit: Getty