New World Department Store China Limited (“NWDS” or the “Company”; Hong Kong stock code: 825), one of the largest owners and operators of department stores in the PRC, is pleased to announce that “The NWDS Nationwide Launching Ceremony cum the 1st NWDS Spokesperson Contest – Northeastern Region Semi-Final” held in Shenyang New World Department Store Zhonghua Road Branch Store at 6:06pm today, symbolizing a Chinese blessing of long-lasting and infinity.

NWDS takes the lead to initiate “Fashion Style” & “Living Style” concept in the retail industry by categorizing the stores into 2 types: “Living Gallery”1 and “Fashion Gallery”2 , aiming to provide consumers with excellent commodities and services. The rebranding project has been planned and prepared for 2 years with announcement made in the press conference held in Beijing on 16 June 2009. Rebranding of NWDS will be implemented by phases in different regions. Northeastern region will be the first region to be inaugurated on 9 September 2009 with Shenyang as the launching city. Northern region and Eastern region will commence the rebranding project in 2010 with Beijing and Shanghai as the launching cities respectively. Central region and Southwestern region will start the revamp in 2011 whereas Wuhan and Chengdu as the respective cities to embark on. The whole project is expected to complete in 2-year time. The rebranding program will be implementing by 3 stages in order to offer a refreshing outlook to consumers. Revamping the merchandize mix will be the first phase; refining the graphic design and decoration of the store be the second phase; upgrading the exterior & interior design as well as the shopping atmosphere of the store as the third phase.

Since the rebranding program officially commences, the three stores of NWDS in Shenyang start operating with “Fashion Style” & “Living Style” concept. Shenyang as our core city of Northeastern Region is adopting the strategy of ‘multiple presences within a single city’ for development, in which economics of scale and synergy effect are enjoyed. Shenyang Nanjing Street Branch Store, Shenyang Taiyuan Street Branch Store and Shenyang Zhonghua Road Branch Store are all located at Taiyuan Street Commercial Circle. Shenyang Nanjing Street Branch Store and Shenyang Taiyuan Street Branch Store will be rebranded as “Fashion Gallery” with different themes. Shenyang Nanjing Street Branch Store is themed as “International Brand Trendy Store”. Apart from the existing international brands, more popular trendy brands as well as exclusive brands and designer brands are planned to introduce, further strengthening its position of leading trendy landmark in the city. Shenyang Taiyuan Street Branch Store has been revamped as the first “Trendy Brand Outlet” in Liaoling province, selling out-seasoned products of famous trendy brands. Both stores target the trendy brand pursuers, providing the latest trendy products as well as out-seasoned products in reasonable price respectively. The two stores are complementing with each other in order to widen the customer base in the market. Shenyang Zhonghua Road Branch Store is rebranded as “One-stop Shopping Living Gallery”. Event hall is planned to launch for holding various promotional activities in different themes every 2 weeks, striving to be an ideal place for family shopping and holiday enjoyment. In order to utilize the strategy of ‘multiple presences within a single city’ more effectively, NWDS further extends its foothold to another important commercial circle in Shenyang, Zhong Street Commercial Circle, where the new Shenyang Jianqiao Road Branch Store will be located. Shenyang Jianqiao Road Branch Store is planned to be a “Fashion Gallery” specializing in refined apparel and accessories that targets mid to high income level consumers. Besides, special services like color-matching consultancy service, foot massage service and ceramics-making class etc will be introduced, fully taking care the needs of customers pursuing a trendy life and striving to be the landmark for elegant and trendy products. The store is expected to commence operation in 2011.

Stores in Shenyang will be revamped by 3 stages. For Shenyang Nanjing Street Branch Store, it will reinforce the merchandise mix by introducing more famous and hot trendy brands in the market. Besides, its in-store signage has already been revamped. For Shenyang Taiyuan Street Branch Store, it has finished the graphic decoration of the store whilst the merchandize mix is fine-tuning in progress. For Shenyang Zhonghua Road Branch Store, the polish of signage, leisure area, restroom and VIP lounge will gradually be completed while interior decorations, shopping environment and the merchandize mix are revamping in progress. After rebranding, all these stores will carry various themes full of “Living” and “Fashion” elements that appeal to all kinds of consumers.

Mr Adrian Cheng, Executive Director of NWDS, the Chief of this rebranding programme as well as the third generation of the billionaire Dr Cheng Yu-Tung and the new generation of leader for the family business, said, ‘NWDS strives to rebrand and lay a solid foundation for the New Brand & Retail Roadmap. Nationwide launching ceremony cum the Northeastern Region Semi-Final held in Shenyang unveils the start of the rebranding program, remarking a new era for the development of NWDS. The launching event took place in Shenyang ensuring its position as the core city of Northeastern Region for development. Brand new Shenyang stores will cover two major commercial circles in Shenyang, the Taiyuan Street Commercial Circle and the Zhong Street Commercial Circle, further enjoying the economics of scale and synergy effect under the strategy of “multiple presences within a single city” as well as strengthening the leading position of NWDS in Shenyang city.’

The “1st NWDS Spokesperson” election is a nationwide contest that echo with the new image of NWDS as well as showing the contest theme of ‘New Character’. Primary selection will be held at stores in different cities while regional semi-final will be held in the 5 regions. Besides today’s Northeastern Region Semi-Final, other regional semi-finals will be held in October, November, December 2009 and April 2010 in Beijing of Northern Region, Chengdu of Southwestern Region, Shanghai of Eastern Region and Wuhan of Central Region respectively. There will be 6 representatives from each region to be participated in the Final Contest that is tentatively planned to be held in Beijing in May 2010. The male and female spokespersons will be awarded 1-year spokesperson contract which worths a total of RMB 600,000 prize.

1 “Living Gallery” is a “One-stop Shopping Department Store” mixed with the elements of department store and shopping mall which targets people of all ages and both genders, catering for their needs in terms of “Clothing”, “Dining”, “Living”, “Travelling” and “Entertainment”. 20%-30% of the store area of “Living Gallery” is reserved for providing complementary services, like dining, entertainment and other services, etc., striving to be an ideal place for family shopping, gathering and holiday enjoyment.

2 “Fashion Gallery” is a “Thematic Department Store” selling fashion and accessories, themed as “Trendy” and “Characters”.     It emphasizes “Mix & Match” with exclusive brands and designer brands introduced, striving to become the “Trendy” landmark in the cities.

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