Retailing, Franchising, and Consumerism Business Intelligence in China

Gome Will Shut 40 Stores This Year

Chinese electronics retailer Gome says that this year it will curtail its expansion and cancel its plan of opening stores in the Southeast Asia region.

Chen Xiao, CEO of Gome, says that in addition to slowing the pace of new store openings, they will also close about 40 stores in different cities that have suffered serious losses.

In November last year, Gome announced plans to make its total store number break 1000 in 2007 and have its sales volume reach RMB100 billion. Following its acquisition of Yongle last year, Gome opened more than 200 new stores in a short period of time, but the company has decided not to focus on the task of increasing store numbers and instead, to pay all attention to increasing its profit.

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