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Malaysian-owned Parkson department store chain has opened a third outlet in Beijing and is planning to add two more, including one in the fast-developing northern part of the city which is the hub of 2008 Olympic Games.

Known locally as Bai Sheng, Parkson China is already the largest foreign-owned department chain in China with 39 stores, including two Xtra hypermarkets in 23 cities, nearly double the number of its closet foreign rival.

But it will continue to expand at a rate of five to six new stores a year to build up the Parkson brand into one of the top five names in departmental retail in the Asia-Pacific, said Low Kim Tuan, chief operating officer for northern China.

“We began our fast expansion in China in 2003 and opened more than 10 stores that year alone. The booming economy is a great opportunity and great timing for us,” he told Bernama in an interview at the latest Parkson store located in the east side of Beijing.

“Getting ahead is important before the market becomes saturated with more foreign players and with the Chinese government already encouraging local retailers to consolidate,” he said.

By the end of this year, the number of Parkson stores is expected to rise to 44. Ultimately, Parkson wants a presence in every provincial capitals and municipalities as well as second-tier cities.

“We will definitely keep moving. As long as the economy is good, the buying power is good,” Low said.

Low and group chief executive officer Chew Fook Seng arrived 13 years ago to break into the Chinese market, starting with the first outlet in Fuxingmen on the west side of Beijing, which remains the company’s flagship store and the market leader for cosmetics and shoes in the capital.

Last year, the company’s overall sales in China rose by 25 percent for a turnover exceeding 10 billion yuan (RM4.5 billion), Low said, adding that 22 of the stores are listed under the Parkson Retail Group.

“Our main customers are locals and they are very, very brand-conscious. Regardless whether it is an international or local product, the products must be branded and be of high quality and they also like new things,” he said.

The latest Beijing store offers four floors of spacious layout contemporary styled merchandise targeted at middle and upper middle shoppers. It also carries a big range of sportswear and accessories and is the first department store to have a mini-driving corner for golfers to test out clubs.

Opened on March 30, it turned in a profit in its very first month, according to Low.

During the Olympics, Parkson will cater for foreign tourists with souvenirs and traditional Chinese merchandise while local shoppers will find more sportswear and accessories of the latest style, Low said.

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This entry was posted on Wednesday, June 13th, 2007 at 6:27 pm and is filed under departmentstore, news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.