RT-Mart

RT-Mart (Chinese: 大潤發; pinyin: Dà Rùn Fā) is a hypermarket chain founded in Taiwan in 1996 by the Ruentex Group, specializing in a wide range of groceries, household goods, apparel, and electronics at competitive prices.^[1] It opened its inaugural store in Kaohsiung, Taiwan, in 1997 and rapidly expanded internationally, establishing its first mainland China outlet in Shanghai in 1998.^[2][3] In 2000, Ruentex partnered with French retailer Groupe Auchan to form Sun Art Retail Group Limited, a joint venture that became the primary operator of RT-Mart stores in China and grew into the country's largest hypermarket network.^[3] By 2025, Sun Art operates 462 RT-Mart hypermarkets, 32 superstores, and 7 membership warehouses across 205 cities in 29 provinces, autonomous regions, and municipalities, with a total gross floor area exceeding 13.4 million square meters.^[4] The chain emphasizes fresh produce, everyday essentials, and value-driven shopping experiences, integrating online platforms like feiniu.com and RT-Mart Fresh for omnichannel retail.^[3] In November 2017, Alibaba Group acquired a significant stake in Sun Art (36.168%), enhancing its digital capabilities amid intensifying e-commerce competition. In January 2025, Alibaba sold its controlling stake (approximately 73.66%) in Sun Art to DCP Capital for US$1.6 billion.^[3][5] In Taiwan, RT-Mart once operated around 20 hypermarkets but faced market consolidation pressures. In 2022, local supermarket leader PX Mart acquired 95.97% of RT-Mart International Ltd.'s shares from Ruentex and Auchan for NT$11.5 billion (approximately US$390 million), a deal conditionally approved by Taiwan's Fair Trade Commission to preserve competition.^[6] In 2025, PX Mart completed the integration by rebranding all 20 former RT-Mart stores as DaQuanLian (大全聯, or "Big PX Mart"), aiming to unify operations and leverage economies of scale while retaining some international product offerings.^[7][8] This shift marked the end of the standalone RT-Mart brand in Taiwan, though its legacy endures through Sun Art's dominance in China.^[7]

History

Founding and early expansion in Taiwan

RT-Mart was founded in 1996 by the Ruentex Group, a diversified Taiwanese conglomerate, in Taipei, as a hypermarket chain targeting urban consumers with affordable groceries, household goods, and general merchandise. The company adopted an early business model centered on large-format stores that integrated supermarket operations with a broad selection of non-food items, emphasizing competitive pricing and one-stop shopping convenience to appeal to middle-class families. This approach drew on local sourcing to ensure fresh produce and everyday essentials at lower costs, positioning RT-Mart as a key player in Taiwan's emerging retail landscape.^[1][9][10] Headquartered in Taipei's Zhongshan District, RT-Mart opened its first store in Kaohsiung in 1997, marking the beginning of its domestic footprint in southern Taiwan. The store's suburban location catered to car-owning shoppers, offering ample parking and a wide assortment of products under one roof to differentiate from traditional wet markets and smaller supermarkets. This initial outlet set the template for subsequent locations, focusing on accessibility in growing urban and peri-urban areas.^[11][12][13] Following its debut, RT-Mart pursued rapid expansion across Taiwan, growing to 20 stores by the early 2000s through strategic openings in key cities and counties. The chain peaked at 23 stores in 2004 with the opening of an outlet in downtown Taipei near Zhongxiao Fuxing MRT Station, adapting to denser urban settings with features like extensive parking for 600 cars and 500 motorcycles to accommodate local traffic patterns. This phase of growth solidified RT-Mart's presence in Taiwan's hypermarket sector before broader international considerations.^[14][1]

Entry into mainland China

In 1998, RT-Mart decided to enter the mainland Chinese market, driven by the saturation of Taiwan's retail sector and the opportunities arising from China's ongoing economic reforms that gradually opened the retail industry to foreign investment through joint ventures and approvals for hypermarket operations.^[15][16] The company's expansion across the Taiwan Strait was motivated by the need for new growth avenues as domestic competition intensified in the late 1990s.^[17] The first RT-Mart hypermarket opened in Shanghai in July 1998, marking the company's initial cross-strait venture and introducing its membership-based, one-stop shopping model to the Chinese consumer.^[3] This flagship store targeted urban middle-class shoppers with a wide range of groceries, household goods, and apparel, adapting the Taiwanese format to local tastes. The opening positioned RT-Mart as one of the early foreign entrants in China's emerging hypermarket sector.^[18] Early operations faced significant challenges, including navigating stringent local regulations on store approvals and site locations, which required partnerships with Chinese entities and compliance with evolving foreign investment rules.^[19] RT-Mart also had to adjust its product assortment to meet Chinese consumers' strong preference for fresh produce and live seafood, often sourced daily from local markets, contrasting with Taiwan's more packaged-goods focus.^[20] Additionally, intense competition from state-owned department stores and traditional wet markets demanded innovative pricing and layout strategies to attract foot traffic.^[21] Despite these hurdles, RT-Mart experienced initial growth, expanding to additional cities such as Ningbo, Wuxi, and Guangzhou in the early 2000s through targeted openings in eastern coastal regions. By 2005, the company had reached approximately 10 stores in mainland China, building a foundation for further scaling while laying the groundwork for a strategic partnership with French retailer Auchan.^[22][23]

Joint venture with Auchan and growth

In 2000, RT-Mart's parent company, Ruentex Group, formed a 50-50 joint venture with the French retailer Groupe Auchan, establishing Sun Art Retail Group on December 13 to operate hypermarkets in mainland China under the dual brands of RT-Mart and Auchan.^[3] This partnership combined Ruentex's local Taiwanese retail expertise with Auchan's established European hypermarket model, enabling the joint entity to leverage complementary strengths in operations and market penetration.^[3] The joint venture accelerated Sun Art's expansion, particularly in tier-2 and tier-3 cities, where growing urbanization created demand for large-format retail. By 2007, the company had opened its 100th store, reflecting rapid scaling from the initial handful of outlets inherited from both partners' pre-venture presences in Shanghai.^[3] This growth continued unabated, reaching the 200th store in July 2011—just days before Sun Art's initial public offering on the Hong Kong Stock Exchange, which raised approximately HK$8.6 billion (about US$1.1 billion) to fund further development.^[24] By 2013, Sun Art had surpassed 300 stores after opening 50 hypermarkets that year alone, and it hit the 400th milestone in 2015, culminating in 484 hypermarkets across 232 cities by the end of 2020.^[3][25] Strategic synergies from the joint venture included integrated supply chains that optimized procurement and logistics across brands, alongside localized merchandising strategies tailored to regional preferences and the expanding middle class in China.^[3] These efficiencies allowed Sun Art to offer a broad range of affordable groceries, household goods, and consumer products, solidifying its position as a key player in China's hypermarket sector during the 2000s and 2010s.^[26]

Rebranding and digital transformation

In 2021, Sun Art Retail, the operator of RT-Mart and Auchan stores in China, completed the rebranding of all 69 Auchan outlets to the unified RT-Mart banner, aiming to consolidate its portfolio, streamline operations, and boost brand recognition in a competitive market.^[27][2] This move built on earlier integration efforts started in 2019, when the company began merging the two brands' operations to create a more cohesive retail presence across its hypermarket network.^[3] The rebranding and broader transformation were accelerated by Alibaba Group's strategic investment in Sun Art Retail in November 2017, when it acquired a 36.16% stake for HK$22.4 billion (approximately US$2.9 billion), marking a key entry into offline retail through its "New Retail" model that blends digital and physical channels.^[28] This partnership introduced advanced technologies, including electronic shelf labels for real-time pricing updates and Alipay for seamless mobile payments, enhancing operational efficiency and customer experience in stores.^[29] By mid-2018, Sun Art had digitally transformed over 100 of its approximately 400 stores using Alibaba's cloud-based inventory management systems, enabling better stock tracking and faster replenishment.^[29] Complementing this, the RT-Mart Fresh app was launched in September 2017 as an online-offline hybrid platform, offering one-hour delivery of fresh and fast-moving consumer goods within a 3-kilometer radius from nearby stores.^[3] RT-Mart also expanded into smaller convenience formats to address urban demand for quick-access retail. In Taiwan, the company opened its first dedicated convenience outlet in New Taipei City in late 2017, featuring seating areas and Wi-Fi to foster a community-oriented shopping environment.^[30] This approach was adapted to mainland China through the 2018 launch of He Xiao Ma, a joint venture mini-supermarket chain with Alibaba that integrated online ordering and in-store pickup for proximity-based convenience.^[31][32]

Recent developments and challenges

In 2022, PX Mart completed its acquisition of RT-Mart's Taiwan operations from Auchan Retail and Ruentex Group for NT$11.5 billion (approximately US$377 million), gaining control of all 20 hypermarkets. This transaction marked the end of foreign majority ownership in RT-Mart Taiwan and paved the way for integration into PX Mart's network. By August 2025, all stores had been rebranded as DaQuanLian ("Big PX Mart"), effectively phasing out the RT-Mart name in Taiwan after 29 years of operation since its founding in 1996. The rebranding unified PX Mart's portfolio, which now exceeds 1,200 locations, enhancing supply chain efficiencies and customer loyalty programs across the island. Auchan Retail's sale of its 64.83% stake in RT-Mart Taiwan to PX Mart in 2022 represented the French retailer's full withdrawal from Asian operations, following earlier exits from China and other markets. This move allowed Auchan to refocus on its core European and international footprints amid competitive pressures in Asia. The transaction, valued at a significant portion of the overall NT$11.5 billion deal, concluded Auchan's two-decade presence in the region, where it had initially partnered with local entities to build RT-Mart. Alibaba Group announced its intent to divest from Sun Art Retail Group, the operator of RT-Mart in mainland China, in September 2024, attracting interest from private equity firms. This followed a period of reduced influence, culminating in the full sale of its approximately 73.7% stake to DCP Capital for HK$13.1 billion (about US$1.7 billion) in January 2025. The divestiture, executed at a discount to Alibaba's original 2020 investment of US$3.6 billion, diminished Alibaba's role in Sun Art's digital initiatives, such as e-commerce integrations, as the company shifted focus to its core online platforms. Sun Art Retail faced significant challenges from intensifying e-commerce competition, recording a net loss of RMB 1.668 billion for the fiscal year ended March 31, 2024 (FY2024), driven by declining store traffic and margin pressures. However, strategic cost controls and operational optimizations led to a recovery, with net profit reaching RMB 386 million for FY2025 (ended March 31, 2025), marking a turnaround of over RMB 2 billion. Amid these shifts, an internal anti-corruption probe in September 2025 resulted in the detention of RT-Mart's chief operating officer, Guan Mingwu, highlighting ongoing governance efforts as the company navigates post-Alibaba independence.

Business operations

Store formats and product offerings

RT-Mart's primary retail format consists of hypermarkets, averaging approximately 29,000 square meters in gross floor area and serving as one-stop shopping destinations for a wide array of consumer goods.^[4] These large stores emphasize a broad product mix, with groceries accounting for the majority of sales, including fresh produce, packaged foods, noodles, and sauces, alongside household items, electronics, and apparel.^[33][34] In addition to hypermarkets, RT-Mart offers specialized formats tailored to evolving consumer needs. Introduced in 2019 as a hybrid online-offline model in collaboration with Alibaba's technology, RT-Fresh focuses on fresh food delivery, enabling one-hour service for orders within a three-kilometer radius and integrating digital tools for enhanced accessibility.^[35][29] The chain also operates smaller convenience outlets under formats like RT-Super, ranging from 1,500 to 3,000 square meters, designed for urban quick-service shopping with a condensed selection of essentials.^[36] RT-Mart's product strategy prioritizes private-label brands, such as its own Bes Carol line for basic goods, which help control costs and differentiate offerings across categories like apparel and household items. The retailer sources the majority of its products locally from Chinese suppliers to ensure freshness and affordability, while incorporating seasonal promotions, such as Lunar New Year specials featuring traditional items like mooncakes and festive decorations.^[37][38][39] The in-store experience draws from Taiwanese retail roots but adapts to Chinese preferences through self-service layouts that promote efficient navigation, dedicated bakery sections for freshly baked goods, and deli areas offering prepared foods like hot meals and snacks. These elements create a convenient, value-oriented environment, further enhanced by digital integrations like app-based promotions and in-store pickup options.^[40][41]

Geographic presence and store count

RT-Mart's operations in Taiwan, where the company originated, consisted of 20 hypermarkets until their acquisition by PX Mart in 2022, with the rebranding to PX Mart (also known as DaQuanLian) completed across all locations by mid-2025, leaving no RT-Mart branded stores in the region.^[8][7] Following the 2000 joint venture with Auchan to form Sun Art Retail Group, RT-Mart shifted its primary focus exclusively to mainland China, where it now operates under the Sun Art umbrella as the dominant brand for all hypermarkets. As of September 30, 2025, Sun Art manages 462 RT-Mart hypermarkets, alongside 32 RT-Super superstores and 7 M-Club membership stores, totaling 501 outlets nationwide.^[4][42] The company's expansion began with its first store in Shanghai in 1998 and has since grown to cover 29 provinces, autonomous regions, and municipalities across more than 205 cities, providing broad national coverage while maintaining a strong concentration in eastern China, particularly the Yangtze River Delta region with over 100 stores.^[4][43] This footprint positions RT-Mart as one of China's largest hypermarket operators, with a particular emphasis on mid-tier cities where it holds significant presence in the sector.^[44]

Supply chain and sustainability initiatives

RT-Mart operates a centralized logistics model featuring self-built distribution centers in key locations such as Shanghai and Guangzhou, which handle approximately 70% of the company's inventory through efficient distribution to stores nationwide.^[45] These centers utilize just-in-time delivery systems to minimize waste, particularly for perishable items, ensuring timely replenishment and reduced overstock. Additionally, RT-Mart maintains partnerships with local farms to source about 50% of its fresh produce, enhancing supply freshness and supporting regional agriculture. A notable investment in supply chain technology came in 2018, when RT-Mart adopted Alibaba-developed electronic price labels across 400 stores to facilitate dynamic pricing adjustments and real-time inventory tracking, improving operational efficiency.^[29] On the sustainability front, RT-Mart made a 2020 commitment to phase out plastic bags entirely by 2025, aligning with broader environmental goals; the company now sources 30% of its products as organic and has implemented energy-efficient store designs that lower the carbon footprint by 15% per store.^[46] These efforts include widespread adoption of biodegradable bags in over 190 stores and photovoltaic installations in multiple facilities to promote renewable energy use. Social responsibility initiatives encompass rigorous supplier audits to enforce labor standards, with thousands of assessments conducted annually to ensure ethical practices across the supply chain.^[46] During the COVID-19 pandemic, RT-Mart participated in community programs, including substantial food donations to support affected areas and public health efforts.^[47]

Corporate affairs

Ownership and subsidiaries

RT-Mart's operations in mainland China are fully owned by Sun Art Retail Group Ltd. (HKSE: 6808), a Hong Kong-listed company established in 2000 as a joint venture between Taiwan's Ruentex Group and France's Groupe Auchan to develop hypermarkets under the RT-Mart and Auchan banners.^[3] Following the 2021 rebranding of all Auchan stores in China to RT-Mart, Sun Art Retail Group has maintained unified ownership and branding for RT-Mart's China-based hypermarket and e-commerce activities.^[2] Historically, Ruentex Group held a significant stake in Sun Art Retail Group as a founding partner, but its ownership was reduced to a minority position in the post-2000 period amid expansions and alliances.^[48] Key ownership shifts occurred in 2017 when Alibaba Group formed a strategic alliance with Auchan Retail and Ruentex, acquiring an initial 36.168% stake in Sun Art Retail Group to integrate offline stores with Alibaba's digital ecosystem.^[3] In 2020, Alibaba expanded its control by purchasing Auchan's remaining stake for approximately $3.6 billion, achieving indirect ownership of about 70% through its subsidiary A-RT Retail Group, which held 51% of Sun Art; this marked Auchan's full exit from the venture.^[49] Alibaba fully divested its stake by January 2025, selling to DCP Capital Partners II, L.P., a Hong Kong-based private equity firm, in a transaction valued at around $1.6 billion.^[5] As of September 2025, DCP Capital Partners II, L.P. indirectly controls 79.15% of Sun Art Retail Group's issued share capital, establishing it as the ultimate controlling shareholder, with the remainder held by institutional investors and public shareholders via the HKSE listing.^[4] Sun Art Retail Group's subsidiaries include e-commerce platforms such as Feiniu.com, launched in 2013 for online grocery sales, and Fields (fieldschina.com), an upscale consumer site established in 2015.^[3] In Taiwan, the former RT-Mart International Ltd., which operated the original RT-Mart stores, was acquired by PX Mart in 2022 from Auchan and Ruentex, transitioning its operations under PX Mart's ownership.^[6] Sun Art Retail Group also maintains internal logistics operations to support RT-Mart's supply chain, though specific subsidiary entities for distribution are integrated within its core retail structure.^[34]

Leadership and headquarters

Sun Art Retail Group, the parent company operating RT-Mart in mainland China, has its operational headquarters in Shanghai at 2/F, No. 99, Jiangchang Er Road, Jing'an District.^[50] This location serves as the administrative base for its hypermarket and retail operations, reflecting the company's shift to mainland China following the establishment of its first RT-Mart store in Shanghai in 1998. Prior to this expansion, RT-Mart's origins traced back to Taiwan, where its headquarters were located in Zhongshan District, Taipei, at B2, No. 306, Section 2, Bade Road; however, that facility has since become defunct for RT-Mart's core operations as focus shifted to the Chinese market post-2000.^[11] The current chief executive officer of Sun Art Retail Group is Shen Hui, who assumed the role in March 2024 and continues to lead as of 2025.^[51] Shen, aged 49, brings over 20 years of experience in China's retail sector, having joined the company in 1999 and previously serving in key roles at Auchan China, including as general manager of hypermarkets from 2016 to 2017.^[51] Under his leadership, the company has emphasized recovery and strategic transformation following Alibaba's reduced stake and the transition to new controlling shareholder DCP Capital Partners in March 2025.^[3] A notable previous leader was Huang Ming-Tuan, who served as CEO from 2019 to 2021 and as chairman until stepping down in early 2025; as a key figure from the founding Ruentex Group, Huang played a pivotal role in RT-Mart's early expansion into China.^[52][53] The board of directors comprises seven members as of 2025, structured to include one executive director, three non-executive directors, and three independent non-executive directors to ensure robust governance.^[54] Chaired by Julian Juul Wolhardt, the board features retail and financial expertise, with members such as Guannan Wang, Mengxue Mei, Karen Yifen Chang, Charles Sheung Wai Chan, and Dieter Yih Lai Tak.^[54] This composition supports oversight in areas like audit, remuneration, and nomination committees, prioritizing professional standards in the competitive retail landscape.^[54] Historically, leadership at Sun Art Retail evolved from Ruentex Group's family-influenced control—rooted in its founding by Yin Shu-tian in the 1960s—to a more professionalized structure following the company's 2011 initial public offering on the Hong Kong Stock Exchange, which raised approximately $1.1 billion and broadened its investor base.^[22][24] Subsequent alliances, including Alibaba's 36.16% stake acquisition in 2017, further diversified management, though recent shifts back to independent professional leadership underscore adaptation to post-IPO and ownership changes.^[3]

Legal and regulatory issues

In September 2025, RT-Mart's Chief Operating Officer, Guan Mingwu, was detained by public security authorities as part of an internal anti-corruption investigation focusing on suspected occupational crimes related to procurement irregularities.^[55] The probe, initiated amid broader organizational restructuring following DCP Capital's acquisition of a controlling stake in Sun Art Retail Group (RT-Mart's parent in China), emphasized the company's zero-tolerance policy toward corruption.^[55] This incident prompted personnel adjustments and operational reviews to enhance compliance and governance.^[55] In Taiwan, the 2022 acquisition of RT-Mart by PX Mart received conditional approval from the Fair Trade Commission (FTC), which imposed seven remedies to preserve market competition, including prohibitions on most-favored-customer pricing clauses with suppliers and restrictions on slotting fees for three years post-merger.^[6] In April 2024, the FTC fined PX Mart NT$20 million for violating the most-favored-customer condition by requiring suppliers to extend discounts offered to competitors, thereby shifting financial risks onto vendors.^[56] This penalty underscored ongoing scrutiny of the merger's impact on supplier relations and retail pricing dynamics.^[56] RT-Mart's operations in China, managed through Sun Art Retail Group, navigated regulatory landscapes during its 2010s expansions, which grew the chain to over 400 hypermarkets without major antitrust interventions from the Ministry of Commerce (MOFCOM).^[57] Following the 2021 rebranding of former Auchan stores to RT-Mart, the company aligned with China's Foreign Investment Law, effective since 2020, by maintaining transparent reporting and market access compliance for its joint-venture structure.^[3][58] Labor relations at RT-Mart in Taiwan faced challenges in the late 2010s, though specific widespread strikes over wages in 2019 were not prominently documented; however, the company's union negotiations during that period contributed to broader industry efforts on wage adjustments and working conditions. The 2025 detention of Guan Mingwu also briefly affected executive stability, tying into leadership transitions under new ownership.^[55]

Financial performance

Revenue and profitability trends

Sun Art Retail Group Limited, the parent company of RT-Mart, has experienced steady revenue growth since its early operations, expanding from approximately RMB 10 billion in 2005 to RMB 71.552 billion in the fiscal year ended March 31, 2025 (FY2025), primarily driven by aggressive store expansion across China. This growth trajectory reflects the integration of RT-Mart's hypermarket model with Auchan China following the 2006 merger, alongside subsequent investments such as Alibaba's 2017 stake acquisition, which bolstered digital capabilities and contributed to scaling operations. Revenue peaked at RMB 83.662 billion in FY2023, before moderating to RMB 72.567 billion in FY2024 and RMB 71.552 billion in FY2025 amid store optimizations and economic pressures.^[59][60][61] In the first half of FY2026 (ended September 30, 2025), revenue declined 12.1% year-on-year to RMB 30.502 billion, with a net loss of RMB 123 million, reflecting persistent economic pressures.^[62] Profitability faced significant headwinds in recent years due to intensifying e-commerce competition from platforms like Pinduoduo and JD.com, resulting in a net loss of RMB 1.668 billion in FY2024. However, the company staged a recovery in FY2025, posting a net profit of RMB 386 million through rigorous cost-cutting measures, including a 16.2% reduction in selling and marketing expenses to RMB 15.232 billion and a 24.1% cut in administrative expenses to RMB 1.709 billion. These efforts, combined with operational streamlining such as closing underperforming stores, reversed the prior year's losses and improved the operating profit to RMB 1.425 billion from an operating loss of RMB 1.009 billion.^[60][61][43] Gross margins have remained relatively stable at 24.1% in FY2025, down slightly from 24.7% in FY2024, supported by expanded private-label offerings that enhance merchandising efficiency, though overall margins hover higher than historical averages of 18–20% due to better supplier negotiations. Operating expenses, however, increased by approximately 5% in FY2023 amid heavy investments in digital infrastructure, including online platforms and supply chain digitization, before being curtailed in subsequent years. As of FY2025, revenue segmentation shows approximately 95% from sales of goods (primarily through hypermarkets and other store formats), and 5% from other sources like rental income and membership fees.^[61][63][34]

Investments and divestitures

Sun Art Retail Group, the operator of the RT-Mart hypermarket chain, raised significant capital through its initial public offering on the Hong Kong Stock Exchange in July 2011, pricing 1.14 billion shares at HK$7.20 each to generate gross proceeds of HK$8.24 billion (approximately US$1.06 billion).^[64] This IPO provided funds primarily for store expansion and operational enhancements in mainland China, where the company operated over 190 hypermarkets at the time.^[65] In November 2017, Alibaba Group invested HK$22.4 billion (approximately US$2.9 billion or RMB 19 billion) to acquire a 36.16% stake in Sun Art through a private placement of new shares, injecting fresh capital to support digital integration and omnichannel retail strategies.^[28] This transaction valued the company at around HK$62 billion and positioned Alibaba as the largest shareholder, fostering synergies between Sun Art's physical stores and Alibaba's e-commerce ecosystem.^[66] A pivotal ownership shift occurred in October 2020 when co-founder Auchan Retail International sold its 36.18% stake in Sun Art to Alibaba for €3.064 billion (approximately US$3.6 billion or RMB 25 billion), elevating Alibaba's ownership to about 72.7% and granting it full control without issuing new shares to the company.^[67] This divestiture by Auchan marked its strategic retreat from the Chinese market amid competitive pressures, while bolstering Alibaba's "New Retail" ambitions through enhanced control over RT-Mart's network of over 450 stores. In December 2021, Sun Art divested its Taiwan operations, comprising 20 RT-Mart hypermarkets and 2 convenience stores, along with related assets, to local retailer PX Mart for NT$11.5 billion (approximately US$384 million or RMB 2.5 billion), streamlining its focus on mainland China amid regulatory scrutiny over market concentration.^[6] The transaction, approved by Taiwan's Fair Trade Commission in July 2022 with conditions on pricing and operations, allowed RT-Mart Taiwan to continue as a separate brand initially while generating capital for Sun Art's core business reinvestments.^[68][69] Alibaba's full divestiture came in January 2025, when it sold its entire 72.7% stake in Sun Art to private equity firm DCP Capital for HK$13.1 billion (approximately US$1.7 billion or RMB 12 billion), representing a significant discount from its cumulative investments of over US$6.5 billion since 2017.^[70] This sale, which triggered a mandatory general offer for remaining shares, shifted control to DCP and reflected Alibaba's pivot away from physical retail amid economic challenges and a refocus on core e-commerce, impacting Sun Art's valuation and strategic direction.^[71]

Market position and competition

RT-Mart holds a prominent position in China's hypermarket and supermarket sector, ranking as the second-largest chain in 2024 with annual sales of 76.41 billion yuan, trailing only Walmart China, which reported 158.84 billion yuan in the same period.^[72] This places RT-Mart ahead of key domestic competitors such as Freshippo (75.00 billion yuan) and Yonghui Superstores (73.24 billion yuan), contributing to the top 10 chains' dominance of 66.6% of the top 100 supermarket chains' total sales of 900 billion yuan.^[72][73] While exact hypermarket-specific market shares are not publicly detailed for 2025, RT-Mart's scale underscores its role as a major player in a segment challenged by shifting consumer preferences toward convenience and digital channels. Direct competitors include international holdouts like Walmart and membership-focused formats such as Costco, alongside domestic rivals Yonghui Superstores and the Alibaba-backed Freshippo, which emphasize fresh food and rapid delivery.^[73] Carrefour, once a significant rival, effectively exited the market after selling its China operations to Suning in 2019, with the remaining stores divested by 2025.^[74] E-commerce giants like JD.com and Pinduoduo have intensified pressure, with online sales comprising 16.9% of top chains' total revenue in 2024—up from lower levels pre-2020—and contributing to broader erosion of physical retail foot traffic amid the rise of instant delivery models.^[73] RT-Mart's strengths lie in its concentration of stores in lower-tier cities, where approximately 48.9% of its outlets are in third-tier locations and 18% in second-tier ones, capitalizing on steady demand for affordable, one-stop shopping in less saturated markets.^[55] The chain has adapted to omnichannel retail through past collaboration with Alibaba, which digitized operations and integrated online-offline synergies, resulting in a 6% increase in online revenue via its RT-Mart Youxian App in fiscal 2025.^[75][76] However, RT-Mart faces challenges from the online shift, with overall sales declining 0.3% year-on-year in 2024 after periods of losses, including a 1.7 billion yuan net loss in the prior fiscal year, particularly in urban areas where e-commerce penetration is highest.^[72][75] This has positioned RT-Mart as a hybrid defender, blending physical hypermarkets with digital enhancements to regain profitability, as evidenced by its return to a 386 million yuan net profit in fiscal 2025 ending March 31.^[75]