SKP to expand into inner Mongolia
What: China’s leading luxury mall operator will open a new flagship store in Hohhot
Why is it important: China’s top department store continues its expansion
The move fits into the city’s plans to build two large commercial complexes, unveiled on 22 February. The store will span of 500 000 square meters and is expected to create 10 000 new jobs.
SKP, which is owned by Beijing Hualian Group, currently operates locations in Beijing and Xi’an. The business has accelerated its expansion in the broader domestic, with new stores under development in Chengdu, Kunming and Hangzhou.
Beijing SKP and Xi’an SKP saw sales grow 15% and 36% respectively in 2020, with the former’s sales reaching CNY 17.7 billion (USD 2.71 billion), making it China’s top department store by revenue for 10 consecutive years, according to Beijing Business Daily.
According to official government data, the income of residents in Inner Mongolia is on the rise, with a 4.1% increase between 2019 and 2020. The region’s energy industry suggests a high number of affluent customers and the arrival of SKP could not only promote it as an up-and-coming retail hub, but help drive luxury brand awareness into lower tier cities.