Japanese retail giant Aeon has 10 new outlets planned for southern China.

The 10 stores will add to the current 20 stores in southern China and 38 in Hong Kong and represent an investment of HK$300 million (US$39 million).

Aeon’s expansion in South Asia and China is part of the Japanese retailer’s 2020 goal to derive offshore sales revenue on par from what it achieves in Japan. The weakening of the Japanese market is also a big influence on Aeon’s shifting focus to other Asian markets such as Malaysia and Vietnam, but especially China.

Aeon’s subsidiary in Hong Kong, Aeon Stores posted a strong performance last year with net profit up 45 per cent to HK$405.9 million. The success was mainly attributed to Aeon department stores and Jusco supermarkets in the mainland, which achieved 24 per cent sales growth to HK$3.6 billion last year.

In Hong Kong weak consumer demand and stiff competition has dented earnings, but not enough to deter Aeon from expansion which will see new store openings in Causeway Bay, Tsuen Wan and Kowloon City.

GB