Business Intelligence on Retailing, Franchising, and Consumerism in China

Watsons Causes Disputes In Fuzhou

Personal care retailer Watsons' plan to open a new store in Fuzhou has caused a dispute.

The contract Watsons signed with Dongbai Department Store contains a restrictive clause saying that Watsons must not open any new store in the surrounding areas during their cooperation period.

However, Watsons now plans to open a new store at the Dayang Department Store, which is near Dongbai.

A representative from Dongbai Department Store says that if Watsons does set up a store in Dayang, Dongbai may remove Watsons' store or bring it to court.

Neither Dayang nor Watsons has responded to Dongbai.

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