Gome Electrical has opened 117 stores in six months on its way to an 8.8 per cent increase in sales for the half year.
Total sales revenue was RMB 31.69 billion and its consolidated gross profit margin was 17.7 per cent.
The store network expansion program is part of a push into tier two cities in China’s mainland where 84 of the new shops opened. Overall same store sales rose 2.3 per cent in a six month period when retail spending in China was subdued, but in tier two cities, same store sales rose 5.3 per cent.
Gome now has stores in 41 Chinese cities where it did not have a presence just six months ago.
Online sales were another growth powerhouse, rising 151.3 per cent in gross merchandise volume. More growth clearly lies ahead with 181 per cent year on year online growth in the last three months of the half year.
In the remaining half of this year, Gome says it will accelerate even further its move into tier two cities, leading into ‘channel penetration’ in third and fourth-tier cities as well, largely based on eCommerce initiatives.
“By seamlessly engaging customers across online and offline channels, the group is destined to achieve fuller integration of all channels and grow its ‘total retail ecosystem’,” the company said in its results filing.
“This will allow customers to enjoy a total retail experience and comprehensive services at any time, any place.”