Suning to open 10,000 stores in 2020 in £4.4bn expansion splurge

The conglomerate said it would plough “at least” that sum into new technologies and its logistics infrastructure throughout 2020.

The company’s founder and chair Zhang Jindong said the investment would allow the business to “effectively meet and match consumer demand” in its domestic market.

Suning, which celebrates its 30th birthday next year, is one of China’s top three non-state-owned enterprises, raking in annual sales of RMB 602.5bn (£65.9bn).

It is focusing on enhancing what it calls its “smart retail infrastructure”, centred around delivering an “enhanced customer experience” for the new generation of Chinese shoppers.

Spending in China is being increasingly driven by a younger, more affluent shopper base, while the country’s ‘lower tier’ cities – smaller, less developed locations that account for half of China’s population – are also benefitting from an increase in purchasing power.

Against that backdrop, Suning is shifting its investment from expanding at scale to improving the quality and efficiency of its businesses and services.

Speaking at Suning’s headquarters in Nanjing, Zhang outlined the new strategy which he dubbed: “Open from 1 to N and integration from N to 1.”

“Open from 1 to N” refers to how Suning is opening up its core retail business through multiple channels to “empower the industry and society”.

“Integration from N to 1” relates to Suning’s supply chain and how it plans to bring physical and digital retail together to improve the customer experience and shorten delivery times.

Zhang said: “Chinese enterprises rely on a 40 trillion-scale consumer market. China’s market volume is enviable and desired by any overseas company. As long as the company wants to do the business, there is room.

“Whoever can more effectively meet and match consumer demand at all levels will succeed in the future.”

Suning is investing heavily to ensure that it is one of those businesses. Back in February, it snapped up 37 department stores from Wanda and in September it completed a deal to acquire a majority stake in Carrefour’s Asian business in a £520m deal.