SUNING.COM(SZ:002024) 3 6 Ke·2025-08-14 11:32Core Viewpoint - Suning.com Group Co., Ltd. (ST Yigou) announced a debt settlement with Carrefour China, which is on the verge of exiting the Chinese market as it prepares to close its last operational store in Shanghai [1][15]. Debt Settlement - ST Yigou plans to settle debts with Carrefour by paying 220 million yuan, which will completely resolve their previous debt relationship [4]. - After the settlement, ST Yigou will indirectly hold 100% equity of Carrefour China [4]. - The partnership between Suning and Carrefour began in June 2019 when Suning acquired 80% of Carrefour China for 4.8 billion yuan [4][5]. Market Challenges - Carrefour has faced significant challenges in the Chinese market, including competition from e-commerce and convenience stores, leading to a decline in its market position [6][9]. - From 2012 to 2017, Carrefour's sales in mainland China dropped from 5.583 billion euros to 4.619 billion euros, a decrease of 17.27% [8]. - By 2018, Carrefour's market share in China fell to 3%, overtaken by competitors like Yonghui Superstores [9]. Internal Issues - Carrefour's struggles are attributed to its delayed response to market changes, particularly in e-commerce, where it lagged behind competitors [9][10]. - The company relied heavily on a "channel fee" profit model, neglecting supply chain and inventory management, which increased costs and reduced competitiveness [9]. Acquisition and Subsequent Issues - After Suning's acquisition, Carrefour initially saw sales growth, but Suning's liquidity crisis hindered further support, leading to operational challenges for Carrefour [13]. - From 2021 to 2023, Carrefour closed over 20 stores, including its last store in Beijing and all stores in Shenzhen, indicating a rapid decline [11][14]. Final Phase - By 2024, Carrefour China's revenue plummeted to 648 million yuan, with a loss of 546 million yuan for the year [14]. - The last operational store in Shanghai is now in clearance mode, signaling the imminent end of Carrefour's presence in China [15].