Fashion retailer Topshop plans China stores in 2008

By George Chen

SHANGHAI (Reuters) - Fashion retailer Topshop plans to open its first China store early next year, following rivals such as Inditex's (ITX.MC) Zara and Hennes & Mauritz AB (HMb.ST) in setting up shop in the world's fastest growing major economy, sources familiar with the situation said on Thursday.

Topshop had signed a deal to rent space in the Shanghai Superbrand Mall in the city's financial district, said the sources, who declined to be identified.

The mall, in which Zara and H&M already have shops, is managed by a property arm of Charoen Pokphand group, Thailand's biggest agricultural business conglomerate.

"Topshop is definitely not coming to China for just one store," one of the sources said.

"It is also looking at many other Chinese cities, such as Beijing and Hong Kong."

Other sources confirmed Topshop was in talks with several property developers in the former British colony of Hong Kong in the hope of launching Topshop stores in the city next year.

Topshop could not immediately be reached for comment.

China's fashion retail market is booming alongside changing lifestyles and income growth. Retail sales in general are expected to grow about 15 percent in 2007, analysts have said.