Chinese shoppers expectant as M&S opens doors

MARKS SPENCER opened its first branch in mainland China yesterday, with company chiefs hoping the store will help lift its performance…

MARKS SPENCER opened its first branch in mainland China yesterday, with company chiefs hoping the store will help lift its performance after the group revealed its worst performance for three years.

Like-for-like UK sales fell by more than 6 per cent in the last three months, although sales worldwide rose 0.4 per cent during the 13 weeks to September 27th.

There was little evidence of concern in Shanghai, where the crush was so great that the management had to stop people coming in to check out the shop, which is Marks Spencer's biggest store in Asia at 40,000sq ft over three floors.

Hundreds of Shanghaiese and expatriate shoppers queued along the upmarket shopping street Nanjing Road waiting for the British retailer to open its doors. Shoppers were delighted at the staple brand's arrival in China, although some were a little concerned that the sizes might be too large for the more petite Chinese woman.

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"I heard about Marks Spencer before. I like it, I like the food section and the clothes, and I will definitely come again. The only thing is that some of the styles are a bit old for me - and they are too big. The sizes start at size eight, and that's big for China," said Lu Yanhua (20) from Shanghai.

Carl Leaver, head of international strategy at MS, said China offered a major opportunity for expansion. The group has 300 stores in nearly 40 countries, and has been in Hong Kong for 10 years. "We're not about taking huge risks with shareholders' money. This is a significant first step. This is our largest store in Asia. This is part of a long-term plan and this means our earnings are less affected by any single market. And look at the queues here - there are fantastic opportunities here," said Mr Leaver.

The group is hoping to make waves among China's increasingly affluent middle-class consumers. Moreover, Shanghai's thousands of expatriates are also going to be regular customers by the look of things. Australian engineer Morgan Strain was browsing in the underwear section. "It's a good addition to Shanghai, it feels like a bit of home, and it's sure to do well," said Ms Strain.

Also picking up some familiar goods in the store was Tony Jowett, director of global sourcing at another British retailer which has recently opened in China, Mothercare. "China is a massive opportunity," said Mr Jowett.

The Shanghai store is the first step in what MS hopes will be a significant engagement in China - the company wants to open up to 50 stores in the country - part of a broader plan to shift the company on to a more international footing.

"The aim is to build quickly. The plan is not over five or 10 years but much quicker. There are 1.3 billion people here, one billion in India. These are two markets we're in. If one in eight of the Chinese population ends up wearing Marks Spencers' knickers, then we'll be happy," said Mr Leaver.