Recently, Hong Kong's leading high-end department store operators have taken premium sites in Nanjing's Xinjiekou district. Together with overseas Chinese funded stores, they will be competing on price, profits and quality. Even traditional local players are eagerly hoping to pick up a share of the competitive pie.

Hang Lung, a department store owned and operated by Hong Kong interests with an international network, is reportedly eyeing the street-facing site of the Xinhua News Agency. Observers believe it will not be long before Hang Lung sets its footprint on Nanjing.

Glimpse of the future today: Golden Eagle Department Store.

As one of the few remaining prime sites in the Xinjiekou district, the Xinhua site currently has an area of between 10,000 and 30,000 sqm. When completed, the shopping centre will have a floor area of between 50,000 and 60,000 sqm.

Earlier, the site of the former Times Square at the northeastern corner of Xinjiekou was taken by Hong Kong's Pat Davie Ltd, despite the fact that the place used to be known locally as the "dead end" of Xinjiekou, having changed hands many times. All previous development plans were aborted halfway and failed.

In fact, it was not until 2004 when Pat Davie took over the site, which was Deji Plaza, that the industry began to see its prospects differently.

Since then, the Deji Plaza has become a feasible prospect. It is a seven-storey building with a business floor area of 20,000 sqm. In addition to clothing brands, it is also home to restaurants, five-star cinemas and children's amusement venues. Only Phase 1 of the project is now open for business, although Phase 2 will have another 200,000 sqm business area.

(For more biz stories, please visit Industry Updates)