New World Department Store China, the mainland retailer controlled by the family of Cheng Yu-tung, plans to spend between HK$800 million and HK$1 billion to buy new store properties over the next three years.
The retailer will also pay HK$200 million to open new outlets including two to three new self-owned stores each year, according to group executive director Adrian Cheng Chi-kong.
NWDS China, which last week announced a first-half profit growth of 62.3 per cent to HK$227.8 million, said it would expand into big cities in which it already had presences to benefit from economies of scale.
The company at present operates 32 mainland stores including 19 self-owned stores and 13 managed outlets.
Mr Cheng said another outlet would be opened in Beijing this year, bringing the total gross floor area to more than one million square metres.
The second-biggest department store chain on the mainland after Parkson Group in terms of store numbers, NWDS China is benefiting from strong domestic consumption as rapid economic development boosts personal income.