DISCUSSION
U.S. retailers in dire need of growth look to the China market
Written by RetailWire Staff
In 2017, a growing number of Western retailers decided to go where they can grow. Toys "R" Us, Starbucks and now Walgreens are among retailers expanding their brick-and-mortar and e-commerce presence in China's booming retail market.
As Western retail markets contract due to bankruptcies, store closures and acquisitions, retailers are increasingly looking beyond their domestic markets for sustainable growth, and for many the large, lucrative China market is tantalizingly rich with possibility.
Consider the following recent retail investments:
- Walgreens: This month, Walgreens Boots Alliance announced it would expand its global retail pharmacy operations with a 40 percent stake in China’s leading pharmacy chain, Sinopharm Holding Guoda Drugstores Co. Ltd.
- Starbucks: The coffee giant made global headlines this month after opening its largest store in the world in Shanghai, China. The massive Starbucks Reserve Roastery store combines artisan excellence and augmented reality (AR) retailtainment to generate excitement and word of mouth.
- Lululemon: The Canadian yoga apparel retailer has expanded its international business in China. Chinese consumers are driving sales for products related to the health and wellness lifestyle, including fashionable yoga merchandise.
- Toys "R" Us: Despite bankruptcy in North America, the toy retailer’s Asian business is booming. Toys "R" Us even opened 10 new stores in China in October, mere weeks after announcing woes in its domestic market.
- H&M: Although the Swedish apparel company overinvested in physical stores in North America, it plans to expand further into the China market using e-commerce to attract young, tech-savvy shoppers.