Multinational Retailers Step Up China Retailing Plans
Leading international retailers including IKEA, WalMart,
7-11 and Carrefour are stepping up their plans to open
more retail outlets in China in spite of the recent SARS
crisis.
According to a report on Hong Kong's Economic Daily News,
IKEA plans to invest US$60 million to open a 30,000 square
store in Beijing. It will open in 2005, and will add 50%
more products than are currently available in IKEA's Beijing
store. Annual sales are estimated at between Chinese RMB
700 million to 1 billion. The exchange rate between the
US dollar and RMB is RMB8.2 = US$1.
IKEA China's general manager Du Fuyan said that IKEA
has always considered Beijing to be its China focus of
development. By 2007 IKEA will have four large-scale outlets
in the capitol city with an investment of US$250 million.
By 2010, IKEA will have 10 outlets in China, with stores
in Shanghai, Guangzhou and Shenzhen as well.
The world's largest retailer WalMart also plans to go
ahead with the opening of its Beijing store on schedule
in June. Training and decoration have already been completed,
and the final touches are now being completed. WalMart
already has stores in Shenzhen, Guangzhou and Shanghai.
According to the company's China public affairs spokesman,
Xu Jun, if Beijing's SARS crisis continues to improve,
the first Sam's Club in China will open in early June.
France's Carrefour has recently signed a cooperation
agreement with China's Zhongkun Group to develop the China
market. Carrefour is a hypermarket, and is in the same
space as the US's Costco. Zhongkun is involved in real
estate development, and will be developing three parcels,
including a distribution point at Dazhongsi, Xizhimen
and Beiyuan, all in Beijing. Carrefour will occupy these
parcels after they have been initially developed.
7-11 already has some stores open in southern China,
and is now planning to enter the north China market. Spain's
DIA discount stores, like 7-11, have sent their proposals
to China's Commerce Ministry, and will begin actively
planning in the second half of the year.
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