Strengthen Shanghai as the Core Growth City
New World Department Store China Limited ("NWDS" or the "Company"; Hong Kong stock code:825), one of the largest owners and operators of department stores in the PRC, is pleased to announce the Company has successfully acquired the operating rights of a managed store in Shanghai,Shanghai-Hong Kong New World Department Store-Pujian Branch Store ("Shanghai Pujian Branch Store"), the store is changed from a managed store to a self-owned store of NWDS.
Opened in September 2007, Shanghai Pujian Branch Store is the seventh department store of NWDS in Shanghai which has 5 storeys with gross floor area ("GFA") of approximately 46,000 sq m. It located at Tangqiao commercial circle in Pudong New District, Shanghai. This is a community zone that surrounded by various residential communities with around 20 mid-to-high end residential estates as well as 700,000 residents approximately. Shanghai Pujian Branch Store offers all-round necessities to these residents, reflecting an infinite growth potential of the store.
In addition, Shanghai Pujian Branch Store is situated right above the Tangqiao station of Metro Line No. 4. The geographical location of the store is excellent with convenient transportation. Just a few stations away from the New Shanghai Commercial City in Pudong central business circle and financial district in Lu Jia Zui, the store is capable of extending its coverage to the commercial zones five kilometers away, fulfilling the needs of those consumers in terms of catering, entertainment and shopping. Shanghai Pujian Branch Store is scheduled to be rebranded this year, before rebranding, Shanghai Pujian Branch Store has already been offering related commodities and services in terms of "Clothing", "Dining", "Living", "Travelling" and "Entertainment".
Under rebranding programme, Shanghai Pujian Branch Store will be positioned as "Living Gallery", further strengthen its "One-stop shopping" image, catering for the needs of both genders and all ages as well as all family members. "Food Corner" is introduced to the store offering various kinds of snacks together with Japanese, Hong Kong-style, Cantonese and Italian cuisines, satisfying the desires of different diners. Event Hall is located at the upper level combines with the essence of outlet floor to create "Discount Space" that carries a range of discounted merchandises of celebrated brands, providing consumers with their favourite products at a competitive price. After the successful acquisition, Mr Adrian Cheng, Executive Director of NWDS,said,"NWDS is actively seeking desirable acquisition targets including acquisition of existing potential managed stores.
After the acquisition of Kunming Store and Ningbo Trendy Store from parent company last year, this year the Company acquires Shanghai Pujian Branch Store which is close to the location of World Expo Shanghai. This not only reflects that we are optimistic about the prospect of the retail industry in China, but also demonstrates the huge potential of newly developed community zones. Together with the comprehensive commercial circle planning of Pudong District Government as well as the opportunity of World Expo Shanghai, it is believed that the development of Shanghai department store industry will be even vigorous.
After the acquisition of the Shanghai Pujian Branch Store as well as the opening of Shanghai Baoshan Branch Store and Shanghai Chengshan Branch Store, which are planned to be opened at end of January and during this year respectively, the Company will have nine stores in Shanghai in which eight of them are self-owned stores and one is managed store, therefore we will further reinforce our influence in major business circles. We will also continue to strengthen Shanghai as the core growth city in Eastern China Region and consistently pursue the expansion strategy of "Multiple stores in a single city" so as to increase the market share while achieving synergy effect and exploiting economy of scale, strive to be the leading department store operator in China."