Sumitomo to increase its stake in Simple Mart
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Japan’s Sumitomo Corporation will buy a 22 per cent stake of Simple Mart, the second-largest supermarket company in Taiwan.
The trading company will pay around ¥4.5 billion yen (US$41.1 million) for the stake in a transaction set for August, the two sides have agreed.
Sumitomo has a partnership with Simple Mart’s parent, Taipei-based insurance and retail group Mercuries & Associates, in drugstore businesses in Taiwan. The Japanese investment will help Simple Mart double its store count by 2023.
Founded in 2006, Simple Mart has more than 600 stores across Taiwan.
Sumitomo will analyse data from Simple Mart’s online sales and rewards program to identify shopper favourites and improve store systems.
Questions & Answers
Q.What is Sumitomo's existing relationship with Simple Mart's parent company?
What is Sumitomo's existing relationship with Simple Mart's parent company?
Sumitomo Corporation already has a partnership with Mercuries & Associates, Simple Mart’s parent company, within the drugstore sector in Taiwan. This indicates a prior business connection between the Japanese trading company and the Taiwanese group.
Q.How much will Sumitomo pay for the stake in Simple Mart?
How much will Sumitomo pay for the stake in Simple Mart?
Sumitomo Corporation will pay approximately ¥4.5 billion yen for the 22 per cent stake in Simple Mart. This sum is equivalent to around US$41.1 million based on the agreed terms for the transaction.
Q.What is Sumitomo's strategic plan for Simple Mart following this investment?
What is Sumitomo's strategic plan for Simple Mart following this investment?
Sumitomo plans to utilise data from Simple Mart’s online sales and rewards programme to identify customer preferences. This analysis aims to help improve the store systems and inform future business decisions for the supermarket chain.
Q.What is the expected impact of Sumitomo's investment on Simple Mart's store network?
What is the expected impact of Sumitomo's investment on Simple Mart's store network?
The Japanese investment from Sumitomo is anticipated to assist Simple Mart in significantly expanding its physical presence. The goal is for Simple Mart to double its current store count across Taiwan by the year 2023.
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