Suning profit down
Chinese home appliances retailer Suning has reported a 31 per cent decline in third quarter profit, citing sluggish sales.
Suning said its profit decreased 597 million yuan (US$95.6 million). The retailer struggled during the third quarter as consumers moved online to make purchases. Increased expenses in marketing and staffing also contributed to the losses.
The retailer closed 22 stores, reducing its store count to 1667 as at September.
Due to sluggish demand, Suning predicted full year profit would fall by 30 to 40 per cent.
Meanwhile, rival Gome has warned of a net loss of between 600 million to 700 million yuan (around US$100 million) for the January-September period due to the drop in sales revenue, rental expenses and falling e-commerce business.