Video rental chain store KPS Holdings is hoping to secure a larger share of the home entertainment market by investing US$26 million in new stores in Hong Kong and Taiwan. The company will increase its shops in Hong Kong from 29 to 100. In Taiwan, the number will rise from two to 50. Dennis Smith, managing director of ChinaVest, a private Hong Kong-based company and controlling shareholder of KPS, said the retail operations would also expand in other parts of Asia. 'We intend to have more than 1,000 stores in Asia by 2005,' Mr Smith said. KPS, which also sells pre-recorded tapes, compact discs, laser discs and computer software, was founded in 1984. It hired Rodney Miles, chairman of the Retail Management Association, as its executive director. 'It's quite a good time to expand,' Mr Miles said. 'Rents for commercial buildings have come down dramatically.' Mr Smith said KPS recorded 25 to 30 per cent sales growth last year despite difficult trading conditions. He said the planned stores in Hong Kong would have smaller floor area than existing shops. 'Our niche is to offer as many choices of videos as possible,' Mr Smith said.
