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100 LOTUS SUPERCENTERS IN CHINA BY 2006:
CP GROUP
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| Super
Brand Mall in the east part of Shanghai in Pudong |
Thailand’s
Charoen Pokphand (CP) Group has announced plans to invest Bt15 billion
(US$350 million) to open 30 new branches of its flagship retail
business Lotus Supercenter in China.
The investment will target seven municipalities and provinces of
northern China–Beijing, Shandong, Hebei, Tai’an, Shanxi,
Henan and Tianjin. CP plans to open as many as 100 outlets by 2006.
Four stores are slated to open this year –one in Shandong province
in July, one in Tianjin in August, and two in Shanxi province in
December.
Currently, Lotus Supercenter operates 17 branches in China–10
in Shanghai, one in Hangzhou, two in Wuhan, three in Guangzhou and
another in Shantou.
The group says it is poised to reap dividends from its investment
in China. “In 2003, we will reap the benefit from our investment
in China,” says Mr Thanakorn Seriburi, senior executive vice
president of Chia Tai Group, an investment arm of CP in China, told
reporters.
CP’s businesses in China are expected to grow by 10% this year,
with sales exceeding Bt172 billion compared to last year’s
US$3.6 billion.
CP businesses have been hard hit since the onset of the Asian financial
crisis in 1997 to 2002. During this period, the group reshaped its
management and hived off some businesses to strengthen its financial
position. Market observers say the group has now emerged stronger
and is turning the corner to produce better results.
CP envisions the group to operate an integrated retail business
in China. As part of the plan going forward, the group will form
joint ventures with management experts in four retail areas–convenience
stores, supercenters, department stores and shopping malls.
The Super Brand Mall in Shanghai is another of the group’s
mega projects. A four-story 20,000 sqm department store is scheduled
to open in the mall in September and become the group’s prototype
for further expansion of the department store business in China.
The US$400 million Super Brand Mall in the east part of Shanghai,
in the Little Lujiazui area in Pudong, has a gross floor area of
241,000 sqm.
The group also sees the potential to increase the number of its
shopping malls in China from five to 100.
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