Suning flips the switch on rural expansion plan
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Suning Appliance, China's second largest consumer electronics retailer, is planning to open 500 new stores in China this year, including 200 in urban settings and 300 in rural areas, the company's chairman said yesterday.
Encouraged by China's efforts to stimulate consumption of household appliances, Suning is working to "expand its presence in China's rural areas in 2010", said Zhang Jindong, Suning Appliance Group's board chairman.
The Nanjing-based company, a retailer of household appliances, consumer electronics, plus office and telecom equipment, said in the long term it will have "a portfolio of 4,000 stores" tailored to the nation's low-income regions, said Zhang.
Rural outlets will range in size from 1,000 to 3,000 sq m, as opposed to their city-based sister stores, which will cover 3,000 to 5,000 sq m.
Top brass believe now is the best time to tap rural demand. "Suning will work quickly to expand its retail network into rural areas," said Zhang.
Last year, Suning opened 200 new stores around the country, increasing its portfolio to over 1,000 stores by the end of 2009. The majority of those outlets were in urban areas.
Suning began targeting rural markets late last year after the central government launched its household-appliance renewal program in August.
