Sun Art expects to hit it big as online sales boom by Ling Wang
The mainland's largest hypermart operator Sun Art Retail (6808) expects its e-commerce platform Feiniu.com to generate sales of 10 billion yuan (HK$12.36 billion) over the next two to three years from just 150 million yuan currently.
Feihu.com was launched last year and made a loss. Executive director Peter Huang Ming-tuan expects the platform to post a profit in three to five years.
He added that the website took in 6,000 orders in January from just 500 transactions last year. Feiniu.com currently operates in Shanghai, Zhejiang, Jiangsu and Anhui provinces. Huang said it expects to cover the whole nation this year.
Sun Art a joint venture between Taiwanese conglomerate Ruentex Group and French retailer Groupe Auchan said on Sunday annual net profit reached 2.91 billion yuan (HK$3.6 billion), up from 2.78 billion yuan in 2013.
Although turnover rose 6.6 percent to 91.86 billion yuan, same-store sales growth fell 1.6 percent. Chief financial officer Jean-Patrick Paufichet said sales of electronics were weaker, but food sales were up.
Huang said the firm expects flat same- store sales growth this year as the mainland's retail market has not yet recovered and amid falls in prepaid cards sales. He also cited the impact of e-commerce, which has hit store sales.
Chief executive Bruno Robert Mercier said the group plans to open 50 to 60 stores every year although sales will be hit by online platforms.
Source: The Standard HK