(Yicai Global) April 23 -- Metro China and Wumart Stores, two of China’s biggest supermarket chains, are forging ahead with the synergizing of their respective supply chains, online platforms and other strengths ahead of the planned listing of parent firm Wumei Technology Corp. on the Hong Kong stock exchange, company executives told Yicai Global in an exclusive interview.

Since its take-over by Beijing-based Wumei in April last year, it took only three months for Metro China to join Wumart’s Dmall online grocery platform, said Claude Sarrailh, chief executive officer of Metro China. The proportion of sales via the app has risen a great deal and all outlets are expected to achieve digitalization this year.

Thanks to its former German parent, Metro China has strong advantages in global supply chain procurement while sister firm Wumart has good resources in the local market. By synergizing their supply chains and undergoing joint procurement, especially in the fields of fresh food, food and daily necessities, they can save costs and improve supply chain processes and efficiency, said Wumart Chief Operating Officer Xu Shaochuan.

Both are planning a big expansion in their brick-and-mortar outlets. Metro, which has 97 stores in the country, will open dozens more shops over the next three years, Sarrailh said. Wumart has 426 outlets and will also open more stores, Xu added.

The two will blend to create a new retail model in China, develop Business-to-Business operations, and put more emphasis on expanding their supply chains, their brick-and-mortar outlets and digitalization to improve efficiency, Xu said.

Editor: Kim Taylor