Marks & Spencer go to Shanghai
Marks & Spencer, one of the largest retailers in the UK, is said to have inked a ten-year property leasing contract with Chinese retailer Hongxiang Department Store. As one of the first high-end department stores in China, Hongxiang Department Store has made adjustments in both brands and store layout almost every three to four years since 1993.
The rise of foreign retailers that have entered China have delivered a strong impact on the nation's traditional department store industry and related sales mode, said Chen Huiquan, chairman of Shanghai Kaikai Group Co., Ltd., which owns Hongxiang Department Store.
However, in many instances, Western companies expanding into the East, have in some case created awkward management situations, and in more extreme situations, failed miserably.
Marks & Spencer plans to open up to 50 stores in China within the next five years. Within the same period, and with expansion in India also in the planning, the group expects overseas revenues to rise to 20% of group revenue from currently 7%.
