Zhang Jindong, the chairman of Suning, has told local media that the company plans to open four to five retail stores in Hong Kong in the second half of 2009 and this is one year earlier than its previous plan.
Zhang said Suning had completed the relevant formalities in Hong Kong and currently is implementing site selection. Its first batch of four to five stores are expected to be opened in the second half of 2009 and, after that, the company plans to train new staff and open at least 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 to stores that have poor performance. In addition, Suning will take advantage of China's rural subsidy scheme to enter the third and fourth-tier markets by opening stores in the core areas of the rural subsidy scheme.
With regards to improving 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.