Leroy Merlin, one of the world's largest do-it-yourself (DIY) retailers, is making its first raid into China's vast market with a mega-store in Beijing by the end of this year.
The projected foray is likely to intensify competition in the mainland's DIY and houseware market, one of the fastest-growing retail sectors in China for foreign firms.
British-based B&Q, Germany's Obi, and Ikea of Sweden are jostling for position in anticipation of the lifting of restrictions on overseas investments in China's retail market next year.
Philippe Deveille, chief executive of Leroy Merlin China, said in a telephone interview with the South China Morning Post that the company planned to open 20 stores, each about 8,000 square metres to 12,000 sq metres, in northern China in the next five years. 'The first one will be opened in a prime location in Beijing by the end of this year,' Mr Deveille said.
In all, about 10 Leroy Merlin hypermarkets will be opened in the capital city through a joint venture with Beijing No 1 Commerce Group.
'We focus at the beginning on the north of China . . . but we'll go into other areas if there are opportunities,' Mr Deveille said.