Chinese group Wangfujing acquires tourism development of Hainan Outlets

The department store group is expected to spend $134 million to buy the outlet business, paying $24 million in cash and taking on $116 million in shareholder debt and interest.

The Hainan Outlets Tourism Development (HOTD) business has been put up for sale by its former owner Juyuan Xincheng, a branch of Beijing Capital Land, after suffering a loss of $4.5 million last year on a turnover of business of about 10 million dollars. According to a report by The Moodie Davitt Report, HOTD is the developer and operator of Wanning Capital Outlets in Wanning, Hainan, located on the southeast coast of the island about a 90-minute drive from Sanya.

This investment marks the Wangfujing Group’s entry into the travel retail and duty free sector. The company, one of China’s oldest department store operators, obtained a duty-free license in June 2020, but has yet to use it. In a statement, Wangfujing Group described the fashion outlet sector in China as a large and rapidly growing market opportunity.

Beijing-based Wangfujing Group operates and manages dozens of department stores and shopping malls in major cities across China, retailing clothing, shoes, hats, cosmetics, bedding products, food and general merchandise, among other goods.

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