Chinese electrical appliances retailer Gome is to close 50 stores this year due to stiff competition from bricks and mortar and online retailers.

Gome has already closed 110 stores in an effort to improve profitability.

Gome also said it is partnering with other retailers to offset online competition. It is negotiating with Guangzhou Mopark Department Store and Wumart Group to open shops in its premises.

“By moving into department stores or shopping malls, Gome can share customer traffic with its cooperating partners and avoid the risk of site selection by itself,” said Li Weihua, a professor at the Franchise Research Center of the China University of Political Science and Law.

It also plans to expand its market by opening 80 to 100 new stores in second- and third-tier cities in 2014.

The retailer, which still believes that the Chinese home appliances market still holds immense potential, expects to open stores in 30 to 50 new cities by 2016.