Sun Art Retail Group announced on the 15th of January, 2021 that their indirect subsidiary RT Mart China has concluded an agreement with Alibaba Network Technology for the transfer of equity shares. RT Mart China agrees to purchase and Alibaba Network Technology agrees to sell 51% of the shares in Hema Fresh. The price is 25.5 million yuan [3.94 million USD].
Prior to the deal RT Mart China held 49% of the shares and Alibaba Network Technology held 51% of the shares. After the deal concluded, RT Mart China held all of the shares, turning Hema Fresh into a wholly owned subsidiary of Sun Art Retail Group.
Hema Fresh is a registered limited company in China. The company was established by Sun Art Retail Group and Alibaba Network Technology in June, 2018 and mainly focused on fresh produce retail services. Hema Fresh opened six stores in Shanghai on the 12th of August, 2018. There are now seven Hema Fresh stores in Shanghai.
People in RT Mart China explain that the combination of Hema Fresh stores and RT Mini Mart stores creates a network of distribution nodes. Many clients currently have their products delivered at home, but the distribution cost is high and full coverage is difficult to achieve. Turning convenience stores into distribution points is a way of integrating online and offline retail, which reduces distribution cost and enhances coverage.
A spokesperson for Sun Art Retail Group explained that the company opened up many flagship stores for diverse retail methods in 2020. Larger malls have suffered from the competition of online sales in recent years. Their market share continues to decline. At the same time, consumer demand for a convenient shopping experience is growing. That is why the expanding network of small-scale neighborhood stores is an important development in the industry.
Source: Sun Art Retail Gropu, news.leju.com