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Denise Tsang

Jusco Stores (Hong Kong), which operates general-merchandise stores in Hong Kong, is heading for the mainland.

 Spokesman Ruby Wan Mei-yuk yesterday said the company planned to set up stores in Guangzhou and freeze expansion in Hong Kong because of fierce local competition and continued sluggish consumer spending.

 The company plans to open a 14,500 square metre Guangzhou store in the middle of next year costing 40 million yuan (about HK$37.34 million).

 It will be Jusco's second store in the city.

 'We see huge potential in the Guangzhou market especially at a time when transportation improves significantly. Underground train services . . . help boost customer traffic a lot,' she said after heading a media tour to the company's existing Guangzhou store in Teem Plaza.

 Located above an underground train station, the Teem Plaza store has seen 40 per cent sales growth in the past three months.

 Heavy customer traffic prompted a turnaround of the store to a $6 million operating profit for the six months to August 31 against a loss for the same period last year.

 Ms Wan said 30,000 customers visited the Teem Plaza store daily on weekdays and the frequency doubled on weekends.

 She hoped the new store, which is situated above another underground station, would enjoy hectic traffic.

 'We aim at having a general-merchandise-store chain in Guangzhou. Opening of any new stores will depend on the availability of busy sites,' she said.

 In Hong Kong Jusco would consolidate its eight existing stores, she said.

 After renewing a lease last month at the flagship store in Kornhill, Taikoo Shing, the company planned to spend $100 million refurbishing it, she said.

 'We won't have any new stores in Hong Kong next year,' she said.

  Jusco's net loss narrowed to $17.58 million in the first half to August 31, compared to $19.28 million for the same period last year.

RETAILING 



Jusco plans more stores in Guangzhou, puts HK expansion on hold