SUNING Appliance Co, China's largest consumer electronics retailer, will expand its retail presence and increase its product lines by tapping the department store segment.

Japan's electronics retail chain Laox, in which Suning owns 51 percent, plans to unveil China's first Laox Life shopping plaza in Nanjing at the end of this year, the Nanjing-based company told the Shenzhen Stock Exchange.

The 5-story outlet will sell furniture, toys, musical instruments and other consumer goods besides electrical appliances.

Analysts said this new business model may be a key to differentiate the different retailers in China's home appliance retail industry.

Suning said Laox Life will extend its presence to 25 major cities on the mainland with 150 outlets by 2016. Laox Life has begun selecting sites in Beijing, Shanghai and Shenzhen. The company aims to at least double its over 1,500 stores in the next 10 years.

Suning's main rival Gome aims to add another 130 stores to its existing 938 outlets by the end of this year.

Suning became Laox's biggest shareholder in 2009 after buying 27.36 percent for 800 million yen (10.4 million) in its first takeover of a Japanese-listed firm. It pumped another 2 billion yen into Laox in 2010 and invested 9 billion yen in June with Suning Appliance Group last June.