AS Watson, Yonghui Superstores and Tencent Holdings have formed a joint venture which they claim will ‘redefine grocery retail’ in the Chinese province of Guangdong.
The JV combines AS Watson’s PARKnSHOP supermarket chain with Yonghui’s portfolio for a combined total of 70 stores and a loyalty member base of 2.2 million. The goal is to capitalize on the complementary strengths of both companies to accelerate growth and expand the business.
“AS Watson Group is delighted and extremely excited about this partnership which brings together Yonghui, one of the largest and most successful national supermarket chain and PARKnSHOP, a well-known brand in Hong Kong and Southern China,” said Dominic Lai, Group Managing Director of AS Watson.
“We have been looking at ways to accelerate our expansion and there is no better partner than Yonghui to achieve that mission.”
Zhang Xuanning, Founder of Yonghui Superstores, added, “Guangdong is one of the most important growth markets in Mainland China and we are honored to team up with such a strong partner as PARKnSHOP to help accelerate our penetration and customer acquisition.”
Tian Jiangxue, Deputy General Manager of Tencent Smart Retail, who is on board as an investor, said, “We believe the collaboration with AS Watson Group and Yonghui will enable us to explore opportunities in the regional market. As a leader in tech and innovation in the Guangdong-Hong Kong-Macao Greater Bay Area, Tencent will spare no efforts in fueling the digital transformation of the joint venture, sharpening its edge in the big data and cloud-computing era.”