Sanpower eyes House of Fraser overseas push

Sanpower chairman Yuan Yafei plans to bring House of Fraser to Russia and the Middle East following his company's takeover of the UK department store last month – the largest foreign retail deal by a Chinese buyer.

The Chinese tycoon said he would open a flagship “Oriental Fraser” store in Nanjing next year, four franchise stores in Russia and two in Abu Dhabi over the next two to three years.

When Sanpower, a retail-to-property group, bought 89 per cent of House of Fraser it marked the latest example of a Chinese company seeking an international foothold. Chinese retailers are hoping to target both non-Chinese consumers and the rapidly growing number of Chinese tourists going overseas.

Mr Yuan said the deal would also help Sanpower, the owner of one of the oldest department stores in China, face growing challenges posed by ecommerce and increasingly complex global supply chains.

"It has the type of department store management system that the Chinese department stores right now lack, especially its buyer system, house brands and also European supply chains," he said.
– Copyright The Financial Times Limited 2014