Monday, January 05, 2009

Japan's Aeon slows expansion in China

Aeon Co Ltd, the largest retailer in Japan, is slowing expansion in China due to the worst retail market in at least 30 years, the China Daily reported, citing its Chief Financial Officer Masaaki Toyoshima as saying.

The company postpones the deadline for achieving its expansion target of 100 stores in China to February 2012, instead of 2011 in the original plan.

Besides, the company will cut the three-year US$8.8 billion capital spending plan.

Aeon's 23 general merchandise stores and four supermarkets in China saw less than 5% in sales growth since November 2008, compared with a 20% growth in the first 10 months of last year, said the company.

With the slowing economy in China, 2012 is a more realistic target, said Toyoshima.

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