Following its acquisition of Ningbo Ci Ke Long Supermarket for RMB280 million, CR Vanguard says it will further acquire three supermarkets in Zhejiang Province.
Of the three supermarkets Shaoxing Le Ke Duo Supermarket and Bai Jia Yuan Supermarket both belong to Nibo Fubang (Holdings) Limited. The name of the third supermarket has not been released.
Chen Lang, CEO of Vanguard, says his company will cooperate with Fubang to invest RMB100 million on setting up their Ningbo branch. Vanguard will spend RMB80 million on the new branch and Fubang will take care of the rest.
Analysts quoted in local media say that Vanguard has seized a leading position in Zhejiang Province and it will continue expansion in the retail sector of the Jiangsu and Zhejiang regions.
According to Chen, Vanguard will open 76 new outlets this year to make the total number of their outlets reach 520, and achieve RMB18-19 billion in income. Chen says that in the future, they will focus on the consumables business, including food processing, beer, and pharmaceuticals.