Japanese retailer Ito-Yokado is demonstrating its confidence in China as it earmarks US$32 million this year for new store openings in the market.

The retailer, a part of Seven & I Holdings, currently has 13 stores in China and it says it will embark on further expansion.

“We plan to open new stores in Chengdu and other cities in Southwest China, as well as improve store profitability in our Beijing outlets,” said Cheng Ning, public relations director of Ito-Yokado China.

To meet the growing needs of upscale consumers, Ito-Yokado plans to open high-end boutique supermarkets in China. The first of those is planned for Chengdu later this year.

“High-end products will provide higher returns compared with domestic products,” said Guo Zengli, president of China Shopping Center Development Association.

“And it’s more important that Ito-Yokado addresses Chinese consumers’ concern about general food safety,” added Zengli.

GB