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Watsons branching out in Kunming

By Li Yingqing and Guo Anfei (chinadaily.com.cn)
Updated: 2009-10-30 13:16

International supermarket chain Watsons said on Thursday it would open three more stores in Kunming, the capital of southwest China's Yunnan province, this October.

There are currently eight stores in Yunnan province, with seven of them in Kunming, and one in Yuxi.

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"We plan to launch more new stores, reaching 1,000 stores in China by 2011 and expanding our coverage to another 10 cities this year," said Guo Xiaobing, western China's operation manager, at the recent opening of a new Kunming store.

The retailer invests an average 1 million yuan in each new store it opens. Watsons has opened 450 stores in 64 cities, largely in southern and eastern China.

Guo said Watsons would continue to put pressure on its suppliers so as to give consumers better value and the company would continue to launch more new products under their own brand this year.

Unlike other premium department stores, supermarkets or convenience stores, Watsons primarily targets young female customers with their range of healthcare products, personal care products and beauty products,.

"Our customers are sophisticated and they are generally loyal to the brands and products they have used, and they want to get discounts and good value," she said.

A subsidiary of Hutchison Whampoa Ltd, which is controlled by Hong Kong tycoon Li Ka-shing, Watsons is a leading health and beauty retailer in Asia.

Watsons entered the mainland in 1989 with the opening of a store in Beijing and its key competitor in many cities is Manning, a fellow retail giant from Hong Kong.