China Paradise Electronics retail Ltd plans to more than double its inventory capacity within a year as it shifts focus from store expansion to cost management in its Shanghai home market.

The country's third-largest appliance chain will invest 230 million yuan (US$28.75 million) to build its biggest distribution center in Shanghai's Qingpu District. Covering 65,000 square meters, the distribution center will be put into use early next year.

"The new distribution cen- ter will be twice as big as the total space of Paradise's other distribution centers in Shanghai, which will help resolve the shortage of products such as air conditioners in busy seasons," said Zhou Meng, vice president of China Paradise Electronics Retail Ltd.

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