Regional focus On Greater Yangtze River Delta
Springland International Holdings Limited (the “Company”) and its subsidiaries (the “Group”) engage in the operation and management of department stores and supermarkets in PRC. The Group is a geographically focused and dual-format retail chain operator in the Greater Yangtze River Delta. The Group operates and manages total 49 stores in 16 cities, which mostly in Jiangsu Province, Anhui Province and Zhejiang Province.
Dual-format retail operator
The business on department store and supermarket benefits each other complementary. This dual-format retail business creates “one-stop” shopping experience for the customers and caters for a diversity of client-tail in order to well serve their needs and preferences from daily necessities to valuable goods and accessories. The Group’s department store and city centre supermarkets are in distance close to each other, either in adjacent sites or the same building. It forms a retail hub that offers consumers a more convenient and comfortable shopping environment and experience.
This retail business model generates diversified revenue sources while lowering the operational risks, creating synergies between department store and supermarket businesses and enjoying greater economic of sales. The Group’s solid experience in the retail business, in-depth knowledge of the retail industry and the prime retail locations of the stores enable store in the Group’s retail network to enjoy advantages over competitors in the respective regions.
Stores situated on prime sites and self-owned properties
The prime locations of the stores occupied are absolute advantage for the success of the Group’s retail business.All of the department stores and city centre supermarkets are located in prime retail space and shopping districts of the cities with high population density. The community centre supermarkets are located in encircling communities with dense population and convenient logistics. The Group obtains a maximum exposure and direct access to customers’attention. The strengthen empowers the Group’s strategic advantage over the competitors and guarantees the leading position on market.
The total gross floor areas of the properties occupied by the Group is 993,000 sq. meters among which, 645,000 sq. meters owned by the Group. The Group’s department stores and supermarkets are sited in self-owned properties reach 80.1% and 31.7% of the total gross floor areas respectively. This arrangement benefits the Group being immune from any affection of rental increase and minimizes the risks of relocation and disruption of business operation in future as well. Other premises secure through long-term leases that typically have a longterm lease of 15-20 years.