Hong Kong-based Watsons plans to open up to 30 new stores and close 10 existing stores in Taiwan this year, a company executive said yesterday.
"In 2003, Watsons will continue its expansion plan in Taiwan and expects to increase its store numbers by 16 to 30 stores," said Gordon Reid, the newly appointed managing director of Watson's Park'N Shop Ltd in Taiwan.
Taiwan is now the biggest market for Watsons in Asia, which operates 223 stores nationwide, of which 130 outlets are located in areas north of Hsinchu.
Reid previously served as Watsons managing director in Hong Kong.
Most of the new stores will be located in central and southern Taiwan, while store closures -- for the most part -- will be in Greater Taipei area, according to Brenda Kou (
The relocation of commercial districts and rising store rents are behind the planned closures.
"MRT stations have shifted the flow of traffic in some commercial districts," she said.
The lack of prime locations in Taipei has also forced Watsons to head south.
"The retail market in northern Taiwan is very competitive, with most of the ideal locations now occupied by other retailers," Kuo said.
Watson's Park'N Shop Ltd, a subsidiary of Hutchison Whampoa Ltd, Hong Kong's largest conglomerate owned by billionaire Li Ka-Shing (
Along with its plans for expansion, Watsons is also keen to form a local partnership.
"Watsons will actively approach new partners and invite them to join our organization this year," said Andrew Miles, regional CEO of Watsons Health & Beauty Asia.
Potential partners may include credit-card issuers, drugstore operators or even competitors.
"As long as the deal is logical and can bring synergy, we won't exclude the possibility to merge or take over other companies," Miles said.
Because of the slow economy and tenacious retail-market competition, some retailers may not be able to stay afloat, and they are welcomed to talk with us, he said.
Miles previously served as Watsons Taiwan's managing director and was the creator of last year's high-profile "I dare to swear" ad campaign.
In January 2002, Watsons promised in a nationwide advertising campaign that their toiletries were lowest priced in the market.
To prove their claim, consumers were encouraged to compare prices in other stores and if they found any products for hair care, skin care or dental products that were priced lower, the company would refund double the difference. Miles said the successful discount pricing campaign would be continued.
"Price is the key ... especially when the economy is in the downturn," he said.
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