Hutchison Whampoa to boost Watsons China presence

A.S. Watson Group, the retail arm of Hong Kong conglomerate Hutchison Whampoa, intends to double its presence in China by 2011, the Financial Times reported. The group recently opened its 500th Watsons store in China, and plans to spend US$80 million on establishing 1,000 stores in the country by 2011 as part of a larger global expansion strategy. Dominic Lai, managing director of A.S. Watson, said the company hoped to increase China's share of Watson group profits to 20% from the current 15%. However, analysts said the company's growth in China would be held back by government regulations that prevent it from expanding into the pharmacy business; the group's stores in mainland China primarily sell cosmetics and personal care items.