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September 5, 2019

LEGO to open more than 140 stores in 35 Chinese cities

Danish toy producer The LEGO Group has revealed that it is set to open more than 140 stores in 35 Chinese cities by the end of this year.

Danish toy producer The LEGO Group has revealed that it is set to open more than 140 stores in 35 Chinese cities by the end of this year.

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The announcement is part of the company’s strategy to expand its physical and digital presence by opening own-branded stores globally.

The family-owned company has also said that it will modernise its platforms to provide enhanced ecommerce and physical retail experiences for its customers.

It will also open an office in the Indian city of Mumbai next year, with plans to expand its presence in the country.

The LEGO Group CEO Niels B Christiansen said: “We see an opportunity to reach more Indian children and families who value the benefits of learning through play.

“The growing middle class, importance of education and growing economy make India a logical next step in our efforts to reach many more children around the world.”

The company also plans to open more than 70 LEGO brand stores outside of China this year.

By the end of this year, it will open its fifth flagship store in Amsterdam, The Netherlands.

Christiansen added: “We are making these investments from a sound financial base to capture the opportunities being created by mega-trends, such as digitalisation and global demographic and economic shifts which are reshaping the industry. Being ahead of these trends will allow us to inspire future generations of children.”

LEGO reported 5% increase in global consumer sales for the first half of 2019 compared to the same period last year. Revenue grew by 4%, while operating profit declined by 16% and net profit by 12%.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.