Chinese Retailer Gome Reports Increased 2011 Revenues and Profits
Apr 16, 2012
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Gome Electrical Appliances Holding Ltd. reported that its revenue increased 17.5% to RMB 59.821 billion (approx. US$9.5 billion) in 2011. Its consolidated gross profit was RMB 10.859 billion, up from RMB 9.360 billion in 2012.
Gome opened 282 new stores and closed 29 in 2012. At the end of 2011 Gome had 1079 stored at the end of 2011, up from 826 at the end of 2012.
Year-on-year same-store sales were up 3.1%.
Gome was in the second year of its new five-year strategic plan in 2011. Gome continued to focus on the plan to compete effectively. Challenges to its business include:
* the challenging economy within and outside of China,
* tightening measures by the Chinese government
* the expiration of Chinese household appliance subsidies
* new competitors
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