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E-Mart, South Korea's biggest retailer, plans to speed up its expansion in eastern China, with Shanghai as its regional base.

The retailer, owned by South Korea's Shinsegae Co Ltd, has signed a deal with Greenland - one of the largest property developers in Shanghai - to open stores in three of the developer's projects, two in the city and one in neighboring Kunshan in Jiangsu Province.

"We are speeding up our growth in Shanghai and make it the center for our expansion in the eastern part of China," said Wang Yuelong, director of business development at Shanghai E-Mart Supercenter Co Ltd.

The retailer has concluded 10 store projects in the city including five already opened for business and one to be opened this year in southwestern Songjiang District.

The two stores under the deal with Greenland are also part of the 10 projects. Plans for the remaining two stores are waiting for government's approval, which the retailer refused to identify the locations.

The two Greenland projects, one in Luwan District and the other in suburban Fengxian District, will start construction respectively in 2006 and 2007, and will open in 2008 and 2009.

The retailer, which entered Shanghai in the 1990s, plans a total of 15 stores in the city by 2010 with its China headquarters to be built here by the end of next year. It opened its first store in northern Hongkou District in 1997.

It is also in talks with potential partners including overseas-funded Hutchison Tibbett & Britten Logistics and a few local logistic firms to build a distribution center here, most likely in northern Baoshan District.

"Shanghai will be an important base for our development as we accelerate our growth in the eastern region," said Wang.

The retailer last month opened its fifth store in Shanghai, located in Pudong's Sanlin Town, a relocation destination for residents affected by construction works for the World Expo 2010. With an investment of 200 million yuan (US$25 million), E-Mart plans to be profitable in six months as it banks on thousands of displaced residents moving to Sanlin Town.

Carrefour will also open a store in the town by the end of this year. Near to the town, there are already a Lotus store, an RT-Mart outlet and a Hualian supermarket.

(Shanghai Daily June 5, 2006)