New World Department Store accelerates mainland expansion

Oct. 8, 2009 (China Knowledge) - New World Department Store China Ltd<0825>, the retail unit of New World Development Co Ltd<0017>, will open five new department stores in mainland China by the end of 2011, according to chairman Henry Cheng.

The new stores, to be located in cities such as Shanghai, Beijing, Shenyang and Zhengzhou, will boost the total number of its department stores to 38 and the total floor area will hit 1.2 million square meters.

Twenty-four stores will be fashion stores, while the remaining 14 will be lifestyle stores, said Cheng at a media briefing.

The company, which has its own brands in Hong Kong and mainland, namely New World and Paris Spring, will also double its capital outlay to HK$1 billion from last fiscal year to fund its expansion.

Last month, the department store chain announced plans to launch an image renovation in its 33 department stores in 17 mainland cities.

Shares of New World Department Store China surged 5.07% to close at HK$6.43 on Wednesday.