Suning develops omnichannel smart retail through Wanda department stores
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Suning.com, the Fortune Global 500 retailer owned by Suning Holdings Group, one of the largest commercial enterprises in China, recently announced the establishment of its Department Store Group. It will focus on professional operations of fashion department store business to strengthen its full-scenarios development in online-and-offline smart retail and improve the shoppers’ experience.
The Company will also acquire nationwide all Wanda Department Stores, belonging to Wanda Group, the large Chinese commercial real estate developer, to expand its bricks-and-mortar retail portfolios and facilitate the all-categories merchandise supply chain to satisfy more local consumers and boost Chinese retail market profits.
As the leading omni-channel smart retailer in China, Suning.com has always been committed to building a full-scenarios retail ecosystem both online and offline to create diversified shopping experiences visible and ready to serve consumers anytime and anywhere. The establishment of the new group with acquisition of Wanda Department Store is expected to further reinforce Suning.com’s offline advantages, improving its overall retail network resources and increasing the business potential of the Company to develop new business opportunities of all-categories merchandise operation, especially of fashion, lifestyle products and fast-moving consumer goods.
The 37 Wanda Department Stores are located in first- and second-tier cities in China, with more than 4 million registered customers. Through the deal, Suning.com will also bring its powerful technology capabilities such as data learning, artificial intelligence, IoT to accelerate the digitization of operation management for traditional department stores to increase the overall service experience and profitability of the industry.
Zhang Jindong, Chairman of Suning Holdings Group said: “The prosperity of the physical retail industry must not only rely on the traditional model and experience. It needs to embrace innovative technology and market concepts to continuously create quality and customized services for consumers.”
Suning and Wanda has built a strategic cooperation since 2015 and strengthened the partnership in 2018 with the former’s acquisition of a tiny stake in the latter’s commercial management subsidiary.
Questions & Answers
Q.What is the primary reason for Suning.com acquiring Wanda Department Stores?
What is the primary reason for Suning.com acquiring Wanda Department Stores?
The acquisition aims to expand Suning.com's physical retail presence and strengthen its full-scenarios development in online-and-offline smart retail. It will also help facilitate an all-categories merchandise supply chain to serve more local consumers.
Q.How does Suning.com plan to improve the newly acquired department stores?
How does Suning.com plan to improve the newly acquired department stores?
Suning.com intends to use its technology capabilities, including data learning, artificial intelligence, and IoT, to digitise the operation management of these traditional department stores. This should increase service experience and profitability.
Q.What kind of merchandise will Suning.com focus on with this expansion?
What kind of merchandise will Suning.com focus on with this expansion?
The company aims to develop new business opportunities focusing on all-categories merchandise operation. This will particularly include fashion, lifestyle products, and fast-moving consumer goods, as well as strengthening its fashion department store business.
Q.Where are the acquired Wanda Department Stores located?
Where are the acquired Wanda Department Stores located?
The 37 Wanda Department Stores acquired by Suning.com are situated in first- and second-tier cities across China. These locations currently serve more than 4 million registered customers.
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