Nitori Plans Expansion of Small-Format Stores in Mainland China
Japanese furniture retailer Nitori Holdings plans to expand its small-format stores across mainland China, focusing on household items less affected by the property market downturn. President Toshiyuki Shirai mentioned this strategy during a new store opening in Hong Kong and highlighted that these smaller outlets will target different customer segments than larger locations. Nitori currently operates 77 stores in mainland China, down from over 100 due to challenges posed by the pandemic and real estate slump. The company aims to open more small-format stores clustered in key regions like Shanghai, Chongqing, and Wuhan to manage transport costs effectively. These new outlets will focus on kitchenware, fitness equipment, and home fragrances—categories that have shown strong performance. Shirai also noted the importance of currency movements for Nitori's operations due to its overseas manufacturing base. The company has secured forward exchange contracts until March 2027 at a rate of Y156 per dollar to mitigate potential earnings impacts.
Topics: China market strategy retail expansion store formats