Chinese shopping centre operator Intime turns stores into hot spots amid better-than-expected results

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Intime runs more than over 30 mid-to-upscale department stores across mainland China. Photo: Simon Song

Published: 7:51pm, 16 Aug 2016Updated: 10:26pm, 16 Aug 2016

Intime Retail, the only bricks-and-mortar Chinese mall operator backed by Alibaba, posted better-than-expected net earnings for the first half, as it embraced online to offline (O2O) channels and turned its shopping outlets into dining and entertainment hot spots.

Net profit fell 21.3 per cent to 561 million yuan from 713 million yuan from a year earlier, according to the company’s filing to the Hong Kong stock exchange, edging past average analyst estimates of 546 million yuan in a Bloomberg survey.

Retail revenue for the same period rose 2.3 per cent to 2.73 billion yuan year on year.

The Beijing-based company runs more than 30 mid-to-upscale department stores across mainland China. They are home to a broad portfolio of global luxury fashion brands such as Chanel and Burberry.

Billionaire businessman Guo Guangchang increased his stake in Intime Retail through his conglomerate Fosun International. Photo: Edward Wong

Undeterred by a tepid consumer appetite for traditional retailers, Intime’s earnings were aided by its online strength in an Alibaba tie-up as well as improved foot traffic driven by more dining and entertainment facilities.

“The future of consumer retail will be a combination of both the online and offline experience,”said Intime chairman Daniel Zhang Yong, who was also appointed chief executive of Alibaba Group in May last year.

“We are witnessing the modernisation of Chinese consumers, and that will only make the market more challenging for traditional retailers.”