Stepping Up The Pace

The Standard:

While many shoe and apparel retailers choose to enter the China market by franchising, Walker Group Holdings (1386) is trying to go it alone for the most part in what will soon be the largest consuming nation in the world.

Walker Shop outlets in the mainland sell a diversified range of fashionable sneakers under a one-stop-shop concept, said chairman Chan Mei Sheung who believes China still holds a huge untapped potential for the company.

The group’s Walker Shop chain stores in Hong Kong and mainland carry foreign brands like Britain’s acupuncture, as well as its own brands such as Couber G. and Artermis.

On March 28, the company opened its first mainland flagship shop under the name Walker One in Xidan district, Beijing.

Opening a new outlet in a top-tier mainland city requires about 1.50 million yuan (HK$1.71 million), Chan estimated.

The opening of the Beijing branch was timed to coincide with the Olympics and so far, sales in the new store have been encouraging, she said.

Judging from current sales, the venture is expected to break even in two to three years. More plans are under way to open Walker One chain stores in other major mainland cities with Shanghai slated to be the next destination.

As of the end of March, only 37 of the 577 Walker Group branches in the mainland were franchised. More.