Retailing, Franchising, and Consumerism Business Intelligence in China

Dazhong To Close Four Outlets In Beijing

Having opened 65 stores in Beijing, the Chinese electronics retailer Dazhong, which was acquired by Gome, plans to close four unprofitable stores in Beijing during an internal restructuring.

The four stores are located in Beijing's Fengtai, Haidian, and Xuanwu districts.

The news has been confirmed by a representative of Dazhong and the spokesperson said that one of these four stores had already been closed and the reasons for closing these stores were because of high rent or to avoid internal competition.

A high-level manager from Dazhong said the company would focus on store network optimization in 2009. If it could not find suitable sites, the company would not open any new stores this year.

In contrast with Dazhong, Chinese electronics retail giant Suning plans to maintain a rapid expansion in 2009. The company had previously announced plans to open 20 new stores in Beijing in 2009, to complement its existing 50 stores.

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