Gome, Tesco Form Strategic Alliance

Chinese home appliances and electronics retailer Gome has signed a strategic cooperation agreement with Tesco Property in Beijing, and the Chinese retailer and its home appliances products will fully enter Tesco Property's Lifespace shopping centers.

With the strategic cooperation, Gome and Tesco will share their user resources and use their mutual advantages to explore the market demands, improve industry efficiency, cut costs, and maximize the benefit for consumers.

Wang Junzhou, president of Gome, told local media that the strategic cooperation with Tesco is based on Gome's future development plan, which aims to further optimize its network distribution in first-tier cities, and complete and enlarge its coverage in second-tier cities while maintaining a leading position in the Chinese home appliances chain industry.

Wang said Gome will use its advantages in the home appliances marketing and service sectors to provide consumers with convenient and comfortable one-stop shopping experience and more cost-effective product solutions by collaborating with Lifespace.

Remco Waller, chief executive officer of Tesco Property China, said that their cooperation with Gome is based on the similar brand background, operating concept, and strategic expansion of the two parties. He hopes the two parties can share their resource advantages to realize rapid business expansion.