Spanish retail group DIA has announced that it is exiting the Chinese market, with the sale of its operations in Shanghai to Nanjing Suning Supermarket group.
The company is selling 100% of the shares in Shanghai DIA Retail and DIA Management Consulting Services Shanghai to Suning, which is one of the largest retail groups in China.
The transaction is subject to approval by the Chinese antitrust and regulatory authorities.
Last year, DIA posted gross sales of €10.3 billion, representing an increase of 1.5% compared to the previous year, however, El Economista reports that the company saw losses of €26.68 million in its Chinese operations.
DIA currently operates nearly 400 franchised stores in Shanghai. In 2013, the retailer closed its 160 stores in Beijing as a result of continued losses.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.