Following rapid growth in 2006, Xi'an Minsheng Department Store is now increasing its expansion with the acquisition of Shaanxi Hanzhong Shiji Yangguang Shopping Mall.
Ma Mingqing, a representative from Minsheng Department Store, says that the company chose to expand in Hanzhong in southern Shaanxi mainly because of the unique location. Ma says that it used to take 10-12 hours to travel from Xi'an to Hanzhong by train, but now with the launch of the Xi'an-Hanzhong Express Way, it only takes about three hours to travel between the two cities.
What's more, the company says it values the great market potential in Hanzhong and the advantageous condition of Shiji Yangguang, which is located in the core business area of Hanzhong's downtown and is the largest commercial circulation company in Shaanxi Province.
Minsheng's 2006 financial report shows that the company is optimistic of the prospects of China's retailing sector, so it will expand to the second and third tier cities in Shaanxi Province through acquisitions and mergers.