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Business booms as appliance shops take off
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Suning Appliance Co Ltd plans to open more than 200 outlets across the country this year as part of its three-year development strategy to take the lead in the appliance industry.

China's second-largest electronics retailer will have about 900 outlets by the end of this year once the new stores are added to its network.

Shanghai and Beijing, where the revenue of the home appliance market is estimated to exceed 40 billion yuan (US$5.59 billion), will each host 100 Suning outlets by 2010, according to the Shenzhen-listed company.

Large stores remain the core for Suning's development. It will set up 60 new large stores and upgrade the existing 90 stores this year.

"Large stores can efficiently raise revenue and the brand image, as well as satisfy customer needs for one-stop service, so Suning will continue opening flagship stores and expanding its network in downtown areas in big cities," said Jiang Yong, executive president of Suning's development department.

It will also expand its logistics business by beginning the construction of five centers and choosing locations for four more. The company already runs large logistics centers in Beijing, Hangzhou and Nanjing.

"Suning has the strength to lead the appliance industry with its rich experience in management, its reserves of talent and the development of outlets," said Sun Weimin, president of Suning.

The company said in an earlier report that it plans to increase sales to eight billion yuan this year and 15 billion yuan by 2010 in Shanghai by opening more medium and large outlets.

Its revenue in the first nine months last year reached 2.8 billion yuan, growing 51.68 percent from a year earlier, and its profit totaled 941 million yuan, jumping 105 percent.

The retailer scrapped its plan to acquire Beijing Dazhong Electrical Appliance Co in December after the two sides failed to reach agreement on key items.

(Shanghai Daily February 21, 2008)

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