Lindex expands into China and targets to open 100 franchising stores by 2018
Helsinki, Finland, 2013-09-11 12:00 CEST (GLOBE NEWSWIRE) —
STOCKMANN plc, Company Announcement 11.9.2013 at 13:00 EET
Stockmann plc’s subsidiary AB Lindex has entered into a franchising partnership with Suning, one of the largest companies in China, in order to open a chain of Lindex fashion stores in China. The partnership is the biggest step which Lindex has taken in its international operations, and it will speed up the fashion chain’s international expansion.
The first Lindex store will be opened in Shanghai in September 2014. According to the franchising agreement, Suning targets to establish 100 Lindex stores in China between 2015 and 2018. Suning will also introduce Lindex products online in China.
Franchising operations are a key part of Lindex’s strategy. Lindex currently has 33 franchising stores through four franchising partners in six countries: Saudi Arabia, the United Arab Emirates, Bosnia and Herzegovina, Serbia, Croatia, and Iceland. The franchising business model offers Lindex a low-risk opportunity to enter new market areas with efficient use of capital.
Established in 1990, Suning is one of the largest companies in China and ranks 50th among the Top 500 Enterprises in the country. Its annual revenue amounts to 230 billion yuan (approx. EUR 28.6 billion) and the total number of staff is approximately 180 000. Suning’s main business is retail, combined with real estate development and the service industry. The company has entered into more than 700 cities in mainland China and elsewhere in Asia with over 1 700 retail stores. The Suning.com online store is one of the most popular e-commerce sites in China. As part of its real estate development Suning estimates that it will construct 350 new shopping centres by 2020, and it is the landlord to numerous leading retail brands in the world.
Hannu Penttilä, CEO, tel. +358 9 121 5801
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3358