Rainbow stores continues expansion
In this article (5)
Shenzhen-headquartered Rainbow Department Stores is continuing to expand despite falling profit in 2014.
According to stock exchange filings, Rainbow increased sales last year by 6.02 per cent to RMB 16.998 billion (US$2.7 billion). But its profit fell 11.84 per cent year-on-year to RMB 773 million ($124.5 million).
Rainbow stores opened 12 new shops under its own brand and one new Dreams-on store, added five new Weiwo convenience stores and acquired a chain of 153 Q-mart c-stores.
The company now has 62 Rainbow-branded stores and one franchised store with a combined trading area of more than 1.8 million sqm. Its Dreams-on owned chain now stands at four.
At year end, Rainbow had expanded into Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing, and Sichuan.
The company says in 2015 it will transform and restructure its internal business model to boost profitability.
The company will focus on developing a mobile eCommerce channel and improve its supply chain capacity.
Questions & Answers
Q.What was the main reason for Rainbow Department Stores' profit decline last year?
What was the main reason for Rainbow Department Stores' profit decline last year?
The article states that profit fell 11.84 per cent year-on-year to RMB 773 million, despite increased sales. However, it does not explicitly provide a reason for this decline, only noting the fall in profitability.
Q.Which specific business areas will Rainbow Department Stores focus on for future growth and profitability?
Which specific business areas will Rainbow Department Stores focus on for future growth and profitability?
Rainbow plans to transform and restructure its internal business model in 2015 to boost profitability. This will involve developing a mobile eCommerce channel and improving its supply chain capacity across its operations.
Q.How many new stores did Rainbow Department Stores open under its own brand last year?
How many new stores did Rainbow Department Stores open under its own brand last year?
Rainbow stores opened 12 new shops under its own brand last year, increasing its total to 62 Rainbow-branded stores. Also, one franchised store was added.
Q.In which regions has Rainbow Department Stores expanded its operations by the end of last year?
In which regions has Rainbow Department Stores expanded its operations by the end of last year?
By year end, Rainbow had expanded its operations into Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing, and Sichuan. This shows a wide geographical reach across China.
Reader pulse
Rainbow's expansion strategy:
22,614 votes so far