Zhang Jindong, chairman of Chinese electronics retailer Suning, says that the company plans to open four to five retail stores in Hong Kong in the second half of 2009, which is one year earlier than its previous plan.
Zhang told local media that Suning has completed relevant formalities in Hong Kong and currently is implementing a site selection process. Its first batch of four to five stores are expected to be opened in the second half of 2009 and for the next step, the company plans to train talents and open no less than ten stores in Hong Kong.
At present, Suning's competitor Gome has opened 14 stores in Hong Kong.
According to Suning's development plan for 2009, the company will open about 200 new stores around China. Zhang said the company will still accelerate its expansion while making adjustments in stores that have poor performance. In addition, Suning will take China's rural subsidy scheme as an opportunity to enter the third and fourth-tier markets by opening stores in the core areas targeted by China's rural subsidy scheme.
In regards to how to improve Suning's performance, Zhang said the company will accelerate the building of distribution bases with the aim of cutting costs. Meanwhile, it will increase the variety of products sold in its stores and enhance the training of employees.