Alibaba let go? SUNART RETAIL suspends trading, sparking acquisition speculation, the future of RT-Mart remains a mystery

On the vast stage of the retail industry in China, Suning Retail, the former king of supermarkets, is experiencing unprecedented turbulence. On September 27, Suning Retail announced that its stock was temporarily suspended on the Hong Kong Stock Exchange, awaiting the release of insider information related to acquisitions and mergers. This announcement, like a huge stone thrown into a calm lake, instantly stirred up layers of ripples. As one of China's largest retailers, Suning Retail's Suning Tesco supermarket, once won the love of a large number of consumers with its unique business model and quality service. However, with the rise of e-commerce and the increase in offline costs, the hypermarket industry has gradually declined, and Suning Retail has not been spared. Now, facing the huge changes in the market, Suning Retail seems to have reached a new turning point. Looking back at the glorious history of Suning Tesco, we have to mention its founder, Huang Mingduan. In 1996, Huang Mingduan and Yin Yanliang founded Suning Tesco in Taiwan, China, and entered the mainland China market the following year. Suning Tesco quickly stood out in the hypermarket industry with its exquisite decoration, selected goods, and unique on-site food production. In 1999, Suning Tesco achieved a revenue performance of 24 billion yuan, becoming a dark horse in the Chinese hypermarket industry. In 2000, Ruentai Group and French Auchan Group formed a joint venture, introducing a more international operating management model for Suning Tesco. This cooperation not only brought an international perspective to Suning Tesco but also promoted the expansion of Suning Retail's scale and business improvement. In 2011, Suning Tesco merged with Auchan and went public in Hong Kong, making Suning Retail the largest retailer in China. However, the good times did not last. With the impact of e-commerce and the rise in offline costs, the hypermarket industry gradually fell into a predicament. Although Suning Retail received support from Alibaba and was one of the first to carry out digital transformation in the hypermarket retail industry, the pains of transformation were still unavoidable. Starting from 2022, Suning Retail experienced its first loss, and in the 2024 fiscal year, the loss reached an astonishing 2238.5%. Faced with such a dilemma, Suning Retail had to seek a new way out. Therefore, rumors about the sale of Suning Retail have been circulating. Earlier this year, there were reports that Alibaba internally had basically confirmed the sale of Suning Tesco and Hema to COFCO. Although this news was eventually denied, the rumors of Suning Retail being sold have not stopped. Now, with the suspension of Suning Retail and the announcement related to acquisitions and mergers, these rumors seem to have been further confirmed. According to insiders, potential buyers including Dehong Capital and Hillhouse Capital have been considering acquiring Suning Retail. The attitude of Alibaba, the current major shareholder holding about 79% of Suning Retail, also appears to be crucial. However, both Alibaba and Hillhouse Capital have remained silent on these acquisition rumors. Only individuals related to Dehong Capital have stated that they are "not sure." Such an attitude undoubtedly increases market speculation and uncertainty. For Suning Retail, regardless of whether it is eventually acquired, its future path is full of challenges. On the one hand, Suning Retail needs to face external pressures such as the impact of e-commerce and the rise in offline costs; on the other hand, Suning Retail also needs to address internal issues such as transformation pains and declining performance Against this backdrop, the change in leadership at SUNART RETAIL appears to be particularly crucial. In March of this year, SUNART RETAIL announced the appointment of Shen Hui as Executive Director and CEO, succeeding Lin Xiaohai. Shen Hui has rich management experience in the retail industry, and his appointment undoubtedly brings new hope and opportunities to SUNART RETAIL. Under Shen Hui's leadership, SUNART RETAIL will focus on returning to the essence of retail, reshaping its pricing strategy, and regaining revenue growth. This strategic adjustment is undoubtedly a reflection and correction of SUNART RETAIL's transformation pains in the past few years. However, whether this strategic adjustment can be successfully implemented still requires time and market validation. For potential acquirers Dehong Capital and Hillhouse Capital, acquiring SUNART RETAIL is undoubtedly a huge challenge and opportunity. On the one hand, they need to face the current difficulties and issues that SUNART RETAIL is facing; on the other hand, they can also leverage their own resources and experience to bring new development opportunities and growth points to SUNART RETAIL. In any case, the fluctuations and uncertainties of SUNART RETAIL's future have made us pay close attention to and look forward to this former supermarket giant. We hope that SUNART RETAIL can overcome its difficulties and regain its glory on the future path. At the same time, we also look forward to more outstanding enterprises and brands emerging in the future development of the Chinese retail industry, bringing better shopping experiences and services to consumers