New World Department Store says that it will open two new department stores — in Wuhan and Beijing.
New World Department Store will then have 33 department stores in mainland China with a total floor space of over 1 million square meters.
Li An, general manager for Central China Region of New World Department Store, said that the new store in Wuhan would be located in Hanyang, Wuhan. With a total floor space of about 53,000 square meters, the Hanyang store would cost about CNY70 million. Li pointed out that the new store is expected to break-even within three years.
The company will focus on the markets of the southwestern area of China and Chengdu and Guangzhou are also being considered. Lin Caitian, executive director and COO of New World Department Store China, said that Chengdu and Guangzhou are potential markets with a high level of disposable income.
Currently New World Department Store has one store in Chengdu and the company plans to open more new stores there in the next two to three years. As for Guangzhou, because of the high rent in this city, the company will not open stores there unless they have the potential to be profitable.