SOFT DATA
Wumei Group is one of the earliest and biggest retailers in China and the largest supermarket chain in Beijing-Tianjin-Hebei area. The group operates over 1,000 stores, including hypermarkets, convenience stores, department stores and home improvement stores nation-wide. It also works closely with its technology partner Dmall, which is a leading O2O grocery digital platform in China that has connected with 12,000 stores from 80 retailers across China. Wumei has been actively acquiring and investing in foreign retailers in recent years. For instance, it obtained majority stake in B&Q China for US$219 million in 2014 and bought 22 stores from Lotte Mart for US$230 milllion in 2018.
In Oct 2019, Metro AG agreed to sell 80 percent stake in its Chinese operations to Wumei Group and retain a 20 percent stake. Entered China in 1996, Metro now as 89 stores in 59 cities, serving 8 million final customers. Unlike some foreigh retailers that have left the China market as a result of financial losses, Metro has generated sound revenue and profit in recent years. It has also developed sales channels including O2O as well as fast-growing food service distribution and welfare and gifting business in China. Metro China will continue operated independently under its current local brand. The new JV will combine the two retailer's strengths, Metro's B2B business and Wumart's "new retail" expertise from its partner Dmall, and further expanding its customer reach and accelerating growth in China's rapidly evolving retail market.
