Smaller cities key to Watsons' growth

The Watsons chain of health and beauty stores will continue to strengthen its presence using existing stores in first-and second-tier cities and expanding in lower-tier cities in the Chinese mainland, even as the retail market in the nation slows, a company executive said.

The chain operates under the A. S. Watson Group, Asia's largest health and beauty retailer.

Christian Nothhaft, chief operating officer of Watsons China, told China Daily that the company is expanding in the nation faster than its competitors.