Japan-based Ito Yokado officially launched its fifth GMS (general merchandise store) in Beijing yesterday, a step closer to its target of opening 10 such outlets in the capital before the 2008 Olympic Games.

The commercial giant will concentrate its business expansion in Beijing, and is not considering other locations at present, Hanawa Akihiko, deputy representative of Ito Yokado in China, told China Daily.

"Success in Beijing helps us accumulate experience, and high requirements in logistics, infrastructure and consumption capacity force us to focus on a relatively mature market like Beijing," said the deputy president and current vice-chairman of the joint venture.

Outside Beijing, the Japanese chain retailer only has two GMSs in Chengdu, capital city of Sichuan Province.

Operated by Hua Tang Yokado Commercial Co Ltd, a joint venture between Ito Yokado and China National Sugar & Alcohol Group Corp - one of China's largest State-owned corporations - the first Ito Yokado GMS in Beijing opened in 1998.

Official statistics show that combined sales volume at the first four Ito Yokado hypermarkets since they opened amounts to in excess of 6 billion yuan (US$722 million).

Located in Xizhimen, one of the busiest commercial and transportation hubs in Beijing, and covering 18,700 square metres, the fifth Ito Yokado GMS aims to become the flagship store of the commercial behemoth in China.

Another similar outlet is expected to be opened in Wangjing, a newly-developed modern residential community in spring next year.

Hanawa told China Daily that Ito Yokado has also set up 7-11 chain convenience stores and will co-operate with Wangfujing Department Store, a Hong Kong-listed State-owned commercial conglomerate, to open fresh food supermarkets in Beijing.

Source:China Daily