M&S seeks partner for China expansion
Print Edition
MARKS & Spencer has become the latest overseas retailer to admit to a setback in its bid to explore the Chinese market alone by hinting it will no longer open wholly-owned stores on China’s mainland.
Britain’s top clothing retailer will seek a local partner to further expand in China, it said in a press release.
The company is also shutting a third of its 15 wholly-owned stores on the Chinese mainland but plans to open five in better locations.
The shift in strategy comes after global retailing giants Tesco and Kingfisher announced plans to alter their expansion plans in the world’s most populous country by teaming up with local partners.
“When we started in China we said we wanted to establish strong flagship stores,” said Marc Bolland, M&S chief executive, at an investor seminar in Paris.
“We have done that. Now a partner could help us roll it out across what is a vast country.”
As part of efforts to revive the 130-year-old retailer, Bolland unveiled a plan to expand the number of its international stores to counteract sliding sales in the British market.
The plan is designed to transform the company into a “multi-channel” retailer via stores, the Internet and mobile devices.
M&S has set a goal of boosting overseas profits by 40 percent over three years and is to open 250 new outlets.
The international division, which has more than 450 stores across 53 markets, accounts for about 10 percent of group revenue. The company’s priority markets are India, China, Russia, the Middle East and Western Europe, M&S said.
“The change of strategies reflected the challenges for global retailers in China where they face fierce competition and difficulty to target right consumers with right products,” said Stephen Chen, an analyst with Tianyi Investment Consulting, a private research firm. “Seeking a local partner is a better choice and a candidate with some e-commerce background may be ideal.”
Last month, Kingfisher, owner of the B&Q chain, said it was seeking a local partner to bolster its business in China.
Ian Cheshire, Kingfisher’s chief executive, said its Chinese operation was “broadly breaking even.”
Last October, Tesco said it had given up its business model of operating wholly-owned stores in China and tapped China Resources Enterprises Ltd as a local partner.
Under the arrangement, Tesco’s 134 Chinese mainland stores and its shopping mall business were taken over by China Resources, which operates about 3,000 stores across the country.
In exchange, Tesco obtained a 20 percent stake in a joint venture with China Resources that operates the combined retailing businesses.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
