London-based Loon Fung this week opened a new 45,000 sq ft wholesale/retail site in Silverton, London. The new outlet is located
in the cosmopolitan Docklands area of east London, which is expected to rapidly develop in the run-up to the 2012 London Olympic games.
The company expects that the development of the store's catchment area will drive strong performance in its cash and carry section. It also believes that the supermarket section, designed by shop outfitter the Nuttall Group, will attract a wider range of shoppers than is typical for the oriental grocery market.
Loon Fung commercial director Stephen Chung said: "We didn't want to do things the usual way, so we have worked very hard on the look and feel of this store. It is unlike anything we have done before. We are aiming for it to become the flagship of the group."
Chung added that Loon Fung viewed the opening of the Silverton outlet as a step change commercially for the group, adding: "At the moment our turnover is comfortably above £20m and we are very profitable. We expect this new outlet to increase those numbers by approximately one third."
Loon Fung was established 40 years ago as one of the first Chinese supermarkets in the UK. It has since expanded into the wholesale sector and has outlets in Tottenham and Alperton in north and west London.
Meanwhile, rival wholesaler Wing Yip reported that the redevelopment of its Cricklewood, north London, outlet is on schedule. It expects the first phase of the £15m project to be complete by the end of August.
Wing Yip was 30th in The Grocer Big 30 rankings, with turnover of £79m, a 6.8% increase year-on-year. The company also has wholesale and retail centres in Birmingham, Manchester and Croydon.