Vipshop Buys Offline Outlets Business Shan Shan for $421 Million

Chinese online discounter Vipshop Holdings has purchased brick-and-mortar outlets operator Shan Shan Group for 2.9 billion renminbi, or $421 million at current exchange, the companies said Wednesday. The acquisition was closed concurrently with signing and was paid in cash installments. “We are delighted to have reached an agreement to acquire Shan Shan Outlets,” said Eric Shen, chairman and chief executive officer of Vipshop. “This represents another milestone in our efforts to explore online and offline integration in our core business. “Through this highly strategic transaction, we will gain presence in the offline outlet business in China, which further enhances our ecosystem and fortifies our leading position in China’s discount retail segment. We look forward to working with the Shan Shan Outlets team and welcoming them to the Vipshop family.” Headquartered in Ningbo in Zhejiang province, a port city located a three hours drive south from Shanghai, Shan Shan Outlets currently operates five outlets in Ningbo, Taiyuan, Harbin, Zhengzhou, and Nanchang. The company has another five outlets in the pipeline. Vipshop was founded by Eric Shen and Arthur Hong in 2008 and is one of China’s leading flash sales discount operators. In its latest financial filings for the first quarter of 2019, the company reported revenue

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