Suning Xiaodian, the convenience store unit of Chinese retailer Suning.com Co., acquired more than 60 convenience stores in Guangzhou from Hong Kong conglomerate Fung Group as part of its efforts to expand in southern China.

The move followed Suning’s acquisition of the Chinese businesses of Spanish supermarket chain Distribuidora Internacional de Alimentacion SA and France supermarket giant Carrefour.

Terms of the deal weren’t disclosed. But Convenience Retail Asia Ltd., the listed subsidiary of Fung Group, sold Circle K Stores Inc.’s convenience stores in Guangzhou to Fung Holdings (1937) Ltd. for HK$48 million ($6.12 million) in 2015. Fung Holdings, through its wholly owned subsidiary Fung Retailing Ltd., holds a 41% stake in the listed company.

Circle K Stores operates 61 convenience stores in Guangzhou and more than 300 stores in Hong Kong, Macao and Zhuhai.

Convenience Retail Asia sold the Guangzhou stores to the parent company due to continuous losses. Since the first Circle K store opened in 2002, the business has recorded significant losses, resulting from intense competition, slowing economic growth, rising labor costs and other factors, the Hong Kong company said.

The Guangzhou Circle K stores recorded a net loss of HK$21.4 million in 2014. Fung Group has also closed more than a dozen stores in Guangzhou since 2015.

Bian Nong, president of Suning’s consumer goods business group, said Suning expects the management teams running the stores and their strong experience in merchandizing, supply chain and regional network to supplement Suning’s presence in the area.