Fung Group sells Guangzhou Circle K network

South East Asia .
Fung Group sells Guangzhou Circle K network

Inside Retail Asia: Fung Group has sold its Guangzhou Circle K-store network to Chinese retailer Suning for an undisclosed sum.

Facing intense competition in the mainland convenience-store market, the network of 61 outlets has failed to make a profit since the brand’s launch there in 2002. The Guangzhou Circle K business recorded a net loss of HK$21.4 million in 2014 before then parent Convenience Retail Asia sold the business to its 41-per-cent shareholder Fung Group the following year for $48 million (US$6.12 million). Since then, Fung Group has closed at least 12 stores there.

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