New World Department Store China has announced plans to invest CNY100 million to implement an image renovation in its 33 stores across China over the next two years.
It is reported that as part of the renovation the company will divide its stores into lifestyle stores and fashion stores. This move has already been initiated in Shenyang, Liaoning, and will be further extended to north China and east China in 2010.
According to Cheng Chi-kong, the executive director of New World Department Store, after the renovation, the traffic in these stores is expected to increase by between 20% and 30%, and the sales may be increased by between 10% and 20%.
In addition, Cheng revealed that the company plans to acquire leading chain stores in cities at the provincial level and in second-tier cities, in mainland China. The stores to be acquired are expected to generate a return of 15%.