Suning Appliance Co said yesterday that it plans to open 20 stores in Shanghai next year, of which about 90 percent will be in the suburbs where it believes there are good prospects for increased sales.
The country's No.2 electronics retailer expected six flagship stores of 8,000 square meters to be opened in the suburbs, especially the southwest part of Shanghai, to generate total sales of 800 million yuan (US$117 million) next year. Sales are estimated at 1.5 billion yuan after the suburban market turns mature.
"We are positive toward the potential in these areas, which are less saturated. And they are very vital to the sustainable development," Ling Guosheng, vice president of Suning and executive president of the Shanghai headquarters.
Suning now runs over 50 outlets in Shanghai and may lead the Shanghai market with over 50 percent share next year.
Flagship stores account for 30 percent of the total number of Shanghai outlets. The flagship store in Qibao Town, Minhang District, will open during the New Year holiday.
(Shanghai Daily December 30, 2008)