HYPERMARKET operator Sun Art Retail Group Ltd. expects to open 25 new stores in China this year and also return to positive growth in 2019, its top executives said yesterday. The executives were speaking at an earnings press conference a day after the company reported a 7.3-percent fall in 2018 profit, missing market expectations, amid fierce competition including from online rivals. The company, which is backed by China’s biggest e-commerce company Alibaba Group Holding Ltd., also announced a change of leadership. Huang Mingtuan, currently chairman of Sun Art’s subsidiaries operating under the “RT Mart” banner, has been appointed chief executive. He replaces Ludovic Frederic Pierre Holinier who resigned to devote more time to specific operational activities at the company, Sun Art said. The retailer said its full-year net profit fell to 2.59 billion yuan (US$386 million) from 2.79 billion yuan. That was below the 2.70 billion yuan expected on average by 15 analysts whose estimates were compiled by Refinitiv. Turnover fell 2.9 percent to 99.36 billion yuan and same-store sales fell 1.72 percent, versus a 0.26-percent decline a year prior. The group’s gross profit margin increased 1.2 percentage points from a year earlier to 25.3 percent. “2018 was a year where the digitalization of our retail business began, and also a year to plan future development,” the company said. Sun Art has 484 hypermarkets in China, including 24 complexes opened during last year and one closure. Its original plan was to add 35 stores in 2018 to the 461 it had at the end of 2017.(SD-Agencies) |