Retail News
- Shanghai News
Date: 13-Jul-2007 Sources: (Xinhua Online)
BEIJING, July 12 -- The Shanghai No. 1 Department Store, once dubbed the largest shopping center in the Far East, is next year expected to relaunch after the biggest face-lift in its 71-year history.
The store, located at one end of the downtown Nanjing Road pedestrian mall, will kick off the renovations in the second half of 2008 with a total investment estimated at 158 million yuan (US$20.89 million), according to media reports.
Dong Xiaochun, board secretary of locally-listed Shanghai Bailian Group, operator of the store, declined to comment yesterday.
More than 20,000 square meters of shopping area will be redesigned and upgraded with higher-end brands accounting for 80 percent to 90 percent of total space.
A twin building, adjacent to the department store, is under construction and will expand total shopping areas to more than 70,000 square meters when it is completed later this year.
Rival pressure
'In addition to targeting middle-class consumers, we hope to introduce younger brands, cinemas and restaurants to increase entertainment functions,' a company official said.
The move is part of Bailian's initiative to boost sales in the city's heavily competitive retail market.
The Shanghai No. 1 Department Store, formerly known as Sun Co Ltd, was established in 1936. It now sells more than 40,000 products, including jewelry, clothing and accessories, on eight floors covering 25,000 square meters.
However, the store is facing mounting pressure from nearby rival Shanghai New World Co Ltd.
Analysts said retailers are upgrading their product mix to take advantage of higher prices. Cashed-up consumers are fueling the demand for high-end products.
The city's retail sales hit a record high in May of 32.98 billion yuan, an increase of 16.4 percent year on year.
The 349 medium and large retailers generated sales of 4.18 billion yuan from May 1 to May 7, up 16.8 percent from a year earlier.
Bailian, the country's biggest retailer, led the gains, delivering sales of 1.2 billion yuan, charting an increase of 14.9 percent from the same period last year.
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