NWDS acquires Lanzhou Store and converted into a self-owned store
Further expand its development edge in northwestern China region
New World Department Store China Limited ("NWDS")is pleased to announce that Lanzhou New World Department Store ("Lanzhou Store"), NWDS' managed store, has been converted into a self-owned store since 1 November 2011, further strengthening the development edge of NWDS in Northwestern China Region.
Lanzhou is the capital of Gansu Province, located in the upper course of Yellow River. Opened in September 2005, Lanzhou Store has a gross floor area of approximately 27,200 sq m. The store is located in Zhangye Road Walking Street in the Xiguan Cross Commercial Circle, next to Jiuquan Road and the Provincial People's Government, near to the traditional Nanguan Commercial Circle. Situated at the centre of the historical district of Lanzhou, Xiguan Commercial circle is the most prosperous and mature business centre with convenient transport and high traffic. Thanks to the macro-economic control measures actively promoted by the Chinese government, Lanzhou City maintained strong economic growth. For the first three quarters of 2011, the city recorded a GDP of RMB 95.25 billion, an increase of 14.22% over the previous year. Along with the rising urban and rural residents' income level, the consumption demand of Lanzhou City has been stimulated. In first half of 2011, the city's total retail sales of consumer goods reached RMB30.10 billion, an increase of 17.24% over the previous year, implying a huge retail market potential in the area.
Positioning as a "Fashion Gallery" with "Trendy" and "Characters", Lanzhou Store is a "Thematic Department Store" selling fashion and accessories with a six-storey complex. The store has been targeting mainly young, fashionable and trend seeking white-collared customers for the past six years since its opening, striving to become the "Trendy" landmark in the city. The store brings together a wide range of domestic and foreign brands of women's shoes and young ladies' wear which formed its category killers of more than 60 concessions, making Lanzhou Store to stand out from other industry players in the city. Targeting the young sport fans, Lanzhou Store added a specialty floor combined of electronic game city, fashion sport shop, large discounted area and food courts, creating a unique diversified floor among the local department store. A number of popular sport brands are gathered in the sport area facilitating customers for selection. Having a large VIP base with approximately 120,000 loyal customers, Lanzhou Store attaches great importance to continuously enhancing its VIP service. Currently, the store has four VIP Clubs including Smart Lady, Perfect House Wife, Crystal High Heels and Platinum VIP, which held a variety of activities from time to time, such as the Fashion Mix&Match Talk, Shoes Maintenance Seminar, Smart Lady Skin Care Salon and Perfect Mom and Baby's English Class etc., that are very popular among the VIP members.
Mr Philip Cheung, Managing Director and Executive Director of NWDS said, "NWDS has been achieving rapid business expansion through acquisition of the existing managed stores and new projects with potential. Following the acquisition of operating rights for Changsha Trendy Plaza, Chongqing New World Department Store and Beijing New World Trendy Department Store in January this year, NWDS also announced to acquire the property and operating rights of "Channel One" in Putuo District, Shanghai in September. With Lanzhou Store becoming a self-owned store, this will help expand NWDS' retail footholds in the northwestern region and lay a solid foundation to enter the Xi'an market in FY2013, as well as playing a crucial strategic role in the development of the area. In future, NWDS will stick to its plan on the expansion of Shenyang Jianqiao Road Branch Store, commencement of operation of Shenyang Nanjing Street Branch Store Phase II, as well as entering five cities including Mianyang, Yancheng, Xian, Hengyang and Yantai in FY2012 to FY2014 to further increase the number of self-owned stores toexpand its retail network"