Malaysia’s Parkson has entered into a joint venture to develop a food retailing business in China as it transforms its department store portfolio into lifestyle centres.
The company’s wholly-owned subsidiary Grand Parkson has teamed with fellow Malaysian company AUM Hospitality (AUMH) which it majority owns, to create Lion Food & Beverage Ventures Limited. Parkson will own 91 per cent of the business, AUMH the balance.
In a stock exchange announcement, Parkson said the group is undergoing a business transformation in China from a traditional department store model into a lifestyle concept retail business.
“Our aim is to enhance our customer experience by offering a quality shopping, catering and entertainment experience that encourages repeat customer patronage.
“F&B is an important component to the shopping experience that the group is offering to its customers. Developing the F&B sector will provide synergies with the group’s existing retail business.”
The partnership will allow Parkson to leverage AUMH’s expertise and brand resources in the F&B sector.
“Introducing F&B services will be a major strategic move for the group.”
AUMH operates restaurant chains in Malaysia under 12 self-owned and franchised brands, including Johnny Rockets, Quiznos and The Library Coffee Bar. It is 60 per cent owned by a subsidiary of Parkson.
The company has 60 department stores in 36 cities in China.
Source insideretail.asia