Parkson Earns Nearly CNY1 Billion Profit In 2010

According to Parkson Group's performance report for 2010, its net profit in 2010 was CNY992 million, a year-over-year growth of 8.89%.

With the rapid development of the Chinese mainland consumer market, Parkson plans to open eight to ten new stores in the next two years. At present, it has selected approximately 22 new locations.

Based on its current portfolio, Parkson will increase its business area at an annual average rate of 20%. At the same time, it will concentrate on relatively affluent cities or purchase third parties in the new markets that meet the strategic intent of the group, including acquiring rival stores, properties that Parkson flagship stores are occupying, and properties that are potential locations for its flagship stores.

Parkson also states that it has opened seven new stores over the past 15 months. Even though the group constantly reduced discount activities in its existing stores, it still maintained an overall sales margin of 19%, and its sales margin of individual stores increased by 0.11% compared with the same period of 2009.