Red Flag Low-Key Acquisition Supermarket To Accelerate The Layout Of Sichuan

In 2015, the red flag chain was the most frequently launched year in the capital market.

Up to now, it has acquired 125 Hongyan supermarket and 388 mutual supermarket stores.

There are more than 2200 stores in one jump.

The integration of the local retail industry will make the store sales network more complete and more powerful.

"Now Hongyan supermarket has been converted to complete, 2/3 of its storage center has been converted to our logistics distribution center, will be officially launched in November 2nd."

Cao Shiru disclosed that improving logistics delivery efficiency will further reduce the company.

And enhance market competitiveness.

In terms of integration and reciprocity, it is still being carried out due to the large number of stores and complicated procedures.

Cao Zeng Jun, the company's secretaries, also told reporters that while integrating mutual benefits, the company also acquired a supermarket in Leshan.

He said, "because the scale of this supermarket is relatively small, no announcement has been made. In fact, there are still some other small acquisitions going on."

It is reported that the red flag chain has opened shop in Leshan, through the acquisition of this Leshan Sihai supermarket.

It was equivalent to opening 32 stores at one stroke, and the red flag outlets in Leshan quickly spread out, becoming the local convenience store leader.

Leshan Sihai supermarket official website information display, it was founded in August 2000, is the first local supermarket in Leshan to open fresh life supermarket and 24 hour chain convenience store, has now covered Leshan City, five links, Wang Yang, Jiajiang, Jingyan and other surrounding areas.

"As long as it is appropriate, do not rule out the continued acquisition of other supermarkets in Sichuan."

Cao Shiru further revealed.

In October 21st, Hongqi chain shares closed 6.76 yuan, down 8.77%.

In the Chengdu market where competition in the retail industry is intensifying and some enterprises are shutting down shops, the red flag chain is expanding not only against the trend, but also in its performance.

The three quarterly report just released shows that both the company's revenue and net profit have increased in 1-9 months: the 1-9 month red flag chain realized operating income of 4 billion 76 million yuan, up 13.31% over the same period last year; the net profit attributable to shareholders of listed companies was 154 million 816 thousand and 300 yuan, up 10.64% over the same period last year.

In the announcement, Hongqi chain estimated that the net profit attributable to shareholders of Listed Companies in 2015 was 178 million 781 thousand and 900 yuan to 187 million 295 thousand and 400 yuan, up 5%-10% over the same period last year.

China Aviation Securities pointed out that horizontal integration enabled red flag chain store sales network to be more complete and more capable of radiating. At the same time, it could improve the efficiency of logistics distribution centers, reduce logistics costs and further enhance the company's market competitiveness.

Southwest Securities expects that the 388 stores will be completed in the second half of the year, and the synergy will push the red flag performance peg. The annual revenue is expected to grow by about 13%. The gross profit margin is expected to increase steadily.

In the rapid expansion of stores, the red flag chain O2O strategy is also advancing smoothly.

On the one hand, they set up the orchid orchid network company to create the "product + feature" Internet service platform, on-line red flag quick purchase and red flag WIFI, on the other hand positively cooperate with the Internet giant.

In October 21st, the red flag chain signed a strategic cooperation agreement with the Tencent QQ wallet. The two sides will cooperate in the field of mobile payment and work hand in hand to promote the O2O consumer market.

Following the opening of WeChat's payment in June of this year, the red flag chain has joined hands with Tencent once again, and the red flag chain has become the first enterprise in Southwest China to open a Tencent QQ wallet.

For Tencent, the two mobile payment options were launched before and after the red flag. The focus is on the location of their community convenience stores and the huge number of outlets in Sichuan.

For Cao Sai Lai, she likes to innovate and likes to try new things, so that she is willing to work together with the Internet giants.

"I think the red flag is not a convenience supermarket, but a technology enterprise. The new way of payment will bring more passenger flow and enhance goods and services."

Cao Shiru said.