American hypermarket retailer Meijer has opened its first direct sourcing office in Hong Kong in order to improve its global supply chain and implement innovative solutions with its Asian suppliers. It is the chain’s first operation outside of the U.S.
The company announced the opening last week and said the new office, called Meijer Trading Ltd, will be a platform for expanding the retailer’s sourcing activities throughout Asia, according to Invest Hong Kong.
Meijer is a family-owned chain that operates more than 210 supercenters and employs more than 60,000 employees in five states. Meijer shoppers have access to over forty product categories under one roof including, apparel, home dÃ©cor, automotive and electronics.
Hank Meijer, the company’s co-chairman and chief executive officer, said, “As a major and central hub for business in Asia, Hong Kong appeared to be the most efficient and business friendly place to start our operations.”
The Hong Kong team will be responsible for the sourcing, quality control and quality assurance of its factories manufacturing in Asia. Meijer Trading Ltd will also be working to ensure social compliance standards are implemented in the factories selected to make Meijer products.
Associate director-general of investment promotion for Invest Hong Kong, Andrew Davis, said in welcoming the Meijer office, “Our city is one of the world’s most efficient logistics and distribution hubs, and we are close to many strategic manufacturing bases in Mainland China and other parts of Asia. These offer overseas companies, such as Meijer, an increased efficiency by working closely with strategic partners at all levels of the value chain.”
Meijer Trading Ltd will cover all of Asia Pacific and the company expects significant growth in the future.