Sinopec to run 300 convenience stores with Ruentex -paper (updated)

Ruentex Industries

12/09/2014 12:23

(Adds company statement on partnerships with other companies) 
    SHANGHAI, Sept 12 (Reuters) - Sinopec Corp  0386.HK  
 600688.SS  is planning to run 300 of its convenience stores at 
petrol stations jointly with Taiwan's Ruentex Group  2915.TW , 
the state-run China Securities Journal reported on Friday. 
    The move is probably aimed at enhancing the appeal of 
Sinopec's massive fuel retail division before it sells a stake 
of up to 30 percent that could raise $20 billion. The state-run 
oil giant has shortlisted 37 bidding consortia and is expected 
to choose the winner by the end of September.  ID:nL3N0QV35I    
    Sinopec and Ruentex have already started jointly managing 
eight stores in Shanghai, where daily revenue rose nearly 50 
percent during a trial in August, the business daily said citing 
an unidentified Sinopec source. 
    Under a pact signed earlier this year, the two firms will 
also cooperate on merchandise procurement to cut costs and are 
looking into potential e-commerce cooperation, the daily said. 
    Sinopec has more than 30,000 petrol stations and operates 
some 23,000 convenience stores under the Easy Joy brand. Ruentex 
operates about 600 convenience stores under the C-Store brand in 
China. 
    Sinopec said in a statement on Friday it has also inked 
preliminary agreements with firms including Haier Electronics 
 1169.HK , Huiyuan Juice  1886.HK  and New Hope Group  NWHOP.UL  
for them to supply products at favourable prices. 
    "As Haier's core oil supplier, Sinopec will also provide 
quality fuel and services for Haier's transportation and 
delivery processes," Sinopec said in a statement.   
    Unlike Western markets, where non-fuel businesses - 
convenience stores and services such as fast food or car washing 
- can account for more than half of a fuel station's profits, 
more than 99 percent of Sinopec's retail sales come from petrol. 
    Ruentex also runs more than 300 hypermarts in China under 
Sun Art Retail Group Ltd  6808.HK , a joint venture with 
France's Groupe Auchan. 
 
 (Reporting by Shanghai Newsroom and Fayen Wong; Editing by 
Edwina Gibbs and David Clarke) 
 ((fayen.wong@thomsonreuters.com; +86 21 6104 1779; Reuters 
Messaging: fayen.wong.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA SINOPEC/RETAIL