Wumart Stores sales surge
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Wumart Stores, the Beijing-based, Hong Kong-listed grocery retailing giant, has today reported an 11.9 per cent increase in sales in the first six months of the year.
Total revenue topped RMB11.6796 billion at a time when foreign box box food and hypermarket retailers are feeling the pressure. Lotte Mart this week said it was closing four China stores, and Walmart and Carrefour are both struggling to achieve growth and profitability.
The company says its continuing growth is being driven by new store openings, same store sales increases, higher revenue from suppliers and increased rental income.
During the Reporting Period, comparable store sales of the Group increased by approximately
4.2 per cent, recording an increase of approximately 3.3 percentage points in growth as compared to the corresponding period of last year.
The group’s consolidated gross profit amounted to about RMB2,265 billion, up about 6.8 per cent on the same period of 2014. Consolidated gross profit margin was 19.4 per cent.
Wumart says it will prioritise its business expansion in Beijing, Tianjin, Hebei and Zhejiang.
As at June 30, Wumart had 586 stores – 42 more than at the same time last year.
Questions & Answers
Q.What is driving Wumart's growth when other retailers are struggling?
What is driving Wumart's growth when other retailers are struggling?
The company attributes its continuing growth to new store openings, increases in same-store sales, higher revenue from suppliers, and increased rental income. These factors have contributed to its overall sales surge.
Q.What was the growth in comparable store sales during the reporting period?
What was the growth in comparable store sales during the reporting period?
During the reporting period, comparable store sales for the Group increased by approximately 4.2 per cent. This represents an increase of about 3.3 percentage points compared to the same period last year.
Q.How many new stores did Wumart open in the last year?
How many new stores did Wumart open in the last year?
As of June 30, Wumart had 586 stores. This is 42 more stores than it had at the same time last year, indicating a significant expansion.
Q.Where does Wumart plan to focus its future business expansion?
Where does Wumart plan to focus its future business expansion?
Wumart has stated it will prioritise its business expansion in specific regions. These key areas for future growth are Beijing, Tianjin, Hebei, and Zhejiang.
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