Suning to Open 200 Retail Stores in 2014
Tencent Tech, 2/18/14
Chinese consumer electronics and home appliances retailer Suning (002024.SZ) recently announced that the company plans to open 200 new retail stores in 2014. According to Suning, a focus this year will be on online-to-offline (O2O) connectivity in retail stores, and integrating the company's online and offline teams.
Suning's primary competitor, home appliance and consumer electronics retailer Gome (0493.HK), has announced 2014 plans to close approximately 50 stores in first-tier cities and open between 80 and 100 new stores in second- and third-tier cities. In an effort to reduce costs, Gome has decided to develop a cooperative model with department stores in first-tier cities. Wang Junzhou, president of Gome, has stated that the company is striving to achieve a comprehensive distribution structure covering large stores, local stores, mobile and PC sites, and shipping and delivery centers.
Editor's Note: For more background on this topic, please see "Rumor: Suning to Merge Suning.com with Offline Retail Business" MD 2/14/14 issue.
Keywords: Wang Junzhou hardware retail Gome Suning 002024.SZ 0493.HK consumer electronics home appliances
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