Suning Appliance Co plans to increase sales to eight billion
yuan (US$10.91 billion) next year in Shanghai by opening more
medium and big-sized outlets, the vice president of the electronics
retailer said yesterday.
The Shenzhen-listed company will open more than nine big outlets
next year in Shanghai, each of which can generate annual revenue of
200 million yuan to 400 million yuan. It will open four or five
smaller outlets that can earn 100 million yuan to 200 million in
revenue, said Ling Guosheng, vice president of the Nanjing-based
company.
The outlets will be mainly set up in Shanghai's southwest or
rural areas, where competition is not as fierce as downtown.
The company said sales are expected to reach eight billion yuan
next year and 15 billion yuan in 2010.
"The existing 42 outlets have brought us more than
five-billion-yuan in revenue so far this year," Ling said.
Suning's revenue in the first nine month of this year reached
2.8 billion yuan, growing 51.68 percent from a year earlier, and
its profit totaled 941 million yuan, jumping 105 percent.
It will also expand the market by cooperating with shopping
malls such as Shanghai Brilliance (Group) Co, the country's
second-largest home appliance retailer.
About 50 million yuan will be invested in service centers in
downtown areas such as Zhongshan Park, Xujiahui and
Wujiaochang.
The company scrapped its plan to acquire Beijing Dazhong
Electrical Appliance Co earlier this month as the two sides failed
to reach agreement in some key terms.
Suning's rival Gome Electrical Appliance Holdings Ltd soon
announced it will finance the 3.6-billion-yuan acquisition of
Dazhong.
(Shanghai Daily December 27, 2007)
