Chinese home appliance retailer Suning plans to launch a network of superstores which would allow it to diversify its product range.

Suning, which operates more than 1700 stores in China, Hong Kong and Japan, will open four Suning Expo Super Stores in Shanghai, Nanjing, Beijing and Guangzhou this month, up to 20 this year and 400 within three years.

The superstores will offer not only appliances but also general merchandise, books and daily necessities which would make Suning compete with retailers Wumart, Sun Art Retail, Carrefour and Walmart.

The stores are expected to offset declines in its core business which slid 29.5 per cent in the first half.

Suning chairman Zhang Jindong said earlier this year that the company plans to boost itself not only in appliance market but also in non-appliance sector.

“It’s a positive move,” said Steve Chow, analyst at Kingsway Research. “In the current difficult environment, it is a way out when not many options are available.”

GB