Chinese electronics giant Suning has closed 120 stores as weak consumer spending saw earnings plunge 58 per cent during the first half.

The company says heavy discounts at its physical stores have dragged down profits. The 120 stores it closed were unprofitable and the move has opmitised its retail network.

“We continued to optimise our operating structure although slower economic growth restrained consumer spending,” the company said in a statement.

Despite falling profits, its shares increased 1.43 per cent after e-commerce business rose 101 per cent to 10.6 billion yuan (US$1.73 billion). Redbaby, the maternity and baby products online retailer which it acquired in 2012, has booked 1.8 billion yuan sales.

Suning has 1614 stores in the mainland China, Hong Kong and Japan.