Parkson Retail Group Limited and Bank of Beijing (Shanghai branch) sign a strategic cooperation framework agreement for a 5-billion yuan credit facility to support Parkson’s retail business
(Shanghai, 27 December 2017), Parkson Retail Group Limited (“Parkson” or “the Group”) and Bank of Beijing (Shanghai branch) signed a strategic cooperation framework agreement in Shanghai today. The senior management of Parkson attending the signing ceremony includes the Executive Chairman of the Board Tan Sri William Cheng, Chief Executive Officer and Executive Director Shaun Chong, Brand Director and Executive Director Juliana Cheng, Chief Operation Officer Zhou Jia and Financial Controller Alicia Teh. Shen Jianfeng, President of Bank of Beijing (Shanghai branch) also attended the signing ceremony. In accordance with the strategic cooperation framework agreement signed between the two parties, Bank of Beijing (Shanghai branch) will provide Parkson with a credit facility of RMB 5 billion (or its equivalent amount in USD or HKD) to fund Parkson's local and international operations and to refinance Parkson’s USD bond that is due to mature. The bank will also provide a full range of financial services to Parkson, including settlement, currency exchange, bank transfer, consulting and financial management services. The granting of the credit facility to Parkson is an important step for Bank of Beijing (Shanghai branch) to support the development of the real economy.
Signing ceremony of the cooperation
Parkson is a leading nationwide lifestyle retail operator in China. Parkson opened its first department store in Beijing's Fuxingmennei Street back in 1994. Since then, it has become one of the earliest foreign lifestyle department store chains in China. The Group operates and manages a diversified collection of retail formats in more than 30 major Chinese cities. Such retail formats include department stores, shopping malls, city outlets, supermarkets & food & beverage outlets. As of the end of June 2017, the Group operates and manages 45 department stores and a shopping mall. The Group adopted both online and offline measures to proactively transform its traditional retail business to cater to the constantly evolving retail market.
Parkson to launch city outlet malls, a new retail format to aid transformation
Nanchang Hengmao Parkson
Following the success in the first Parkson Newcore City Mall located in Shanghai, Parkson opened a second Parkson Newcore City Mall in Nanchang. Through launching the outlet malls with E-land, a Korean apparel company, the City Malls aimed to provide customers with a Korean themed shopping experience and competitively priced items with good value for money. The launch of Newcore City Malls is one of the measures taken by Parkson to strengthen its positioning as lifestyle retail operator, marking major improvements in store layout, products display, brand positioning and unique shopping experience to attract more young customers and foster transformation of local retail industry.
Parkson to launch Nanning culture themed shopping plaza, providing a one-stop shopping experience
Nanning Parkson Pedestrian Street Plaza
Nanning Parkson Pedestrian Street Plaza, a Parkson managed property was officially launched in December 2017. It is the fourth Parkson branch in Nanning and the first entertainment and shopping plaza with a Yong cultural theme. Spanning over 50,000 square metre, local Yong cultural elements like Zhuang embroidery, drum tower and knitting are included in the decorations of the Parkson Pedestrian Street Plaza to promote local shopping street culture. This new plaza is one of Parkson’s new retail formats that fuse contemporary shopping with traditional culture and provide a new, cutting-edge shopping option to Parkson’s customers.
Bank of Beijing (Shanghai branch) supports the transformation of Parkson. Through this strategic cooperation and the provision of the credit facility, funds will be available to fuel the expansion of Parkson’s private labels and the development of its core business. The credit facility will allow Parkson to expand its new business ventures, such as cosmetics specialty stores, gourmet supermarkets, food and beverage outlets and apparel brands, that will in turn enable Parkson to optimize it direct and concessional sale mix and to improve operating margin. This strategic cooperation framework agreement will further enrich and deepen both parties’ collaboration.
Bank of Beijing (Shanghai branch) states that "To build a modern economic system, they will focus on the real economy development ", "Deepen the financial system reform to enhance the economic capability of financial services” and the financial services industry is poised to “serve the real economy”. The cooperation has a significant strategic value, brings along new energy to Parkson and plays a pivotal role in Parkson's strategic transformation.