The Loft heads to China with new store Opening
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Japanese household goods store The Loft is preparing to open a new store in China’s Chengdu with local superstore business Chengdu Ito-Yokado.
The Loft holds a 90 percent stake in the new joint venture, which has registered capital of RMB45 million (US$6.54 million).
Chengdu Ito-Yokado is a subsidiary of fellow Japanese general merchandise retailer Ito-Yokado, which has 14 stores in Chengdu and Beijing. The Loft entered discussions with the company to form a partnership while it was evaluating opportunities for a long-term corporate strategy in Mainland China. The new joint venture now paves the way for The Loft to prepare to open its directly managed stores in Chengdu and elsewhere in China.
The Loft, which specializes in display and layout arrangements for household accessories, cosmetics, and stationery, is one of Japan’s largest retailers of household goods with more than 100 stores in Japan. It also has a presence in Thailand. As many Chinese tourists have been visiting Loft stores, particularly Shibuya Loft in the Tokyo metropolitan area, the firm believes its stores in China will be able to attract new local customers.
The new store is expected to launch in spring next year.
Questions & Answers
Q.What is the financial structure of The Loft's new venture in China?
What is the financial structure of The Loft's new venture in China?
The Loft holds a 90 percent stake in the joint venture, which has a registered capital of RMB45 million. This sum is equivalent to US$6.54 million, establishing a significant investment from The Loft.
Q.How will the new partnership with Chengdu Ito-Yokado benefit The Loft's expansion plans?
How will the new partnership with Chengdu Ito-Yokado benefit The Loft's expansion plans?
This joint venture allows The Loft to establish a presence in China, paving the way for it to open directly managed stores in Chengdu and other locations. It marks the first step in its long-term corporate strategy.
Q.Why does The Loft believe its stores will be successful with local Chinese customers?
Why does The Loft believe its stores will be successful with local Chinese customers?
The firm believes its new stores will attract local Chinese customers because many Chinese tourists have already been visiting The Loft's existing stores, particularly Shibuya Loft in Tokyo, indicating an existing interest.
Q.When is the new The Loft store in Chengdu expected to open?
When is the new The Loft store in Chengdu expected to open?
The new store in Chengdu is expected to launch in spring next year. This timing suggests it will be operational within several months, establishing The Loft's first physical presence in mainland China.
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