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Gome to open 130 outlets to rebut ex-boss
By Pan Xiaoyi |
September 3, 2010, Friday
|
Online Edition
Online Edition
GOME Appliance Co said it planned to open 130 stores in the next four months in a move to refute its jailed former boss Huang Guangyu who said Gome was losing market shares to its archrival Suning.
The announcement came just before a special shareholder meeting on September 28 to discuss whether to unseat current chairman Chen Xiao and to issue 20 percent more shares.
Huang, the founder, is serving a 14-year sentence for bribery and insider trading. While in jail, he demanded to oust Chen for pursuing wider profit margins at the cost of market shares by closing underperforming outlets.
To thwart Huang's attempt, Gome said it had completed a 19-month network optimization and was embarking on expansions again as a vital part of its five-year strategy.
Gome aims to keep its leading position in first-tier cities with a focus on five major markets, including Shanghai, Beijing, Guangdong and Sichuan. It will also expand its presence in second and third-tier cities such as Chongqing and Kunming in southwest China.
About 70 new stores will open this month while another 90 will re-open after renovation.
The announcement came just before a special shareholder meeting on September 28 to discuss whether to unseat current chairman Chen Xiao and to issue 20 percent more shares.
Huang, the founder, is serving a 14-year sentence for bribery and insider trading. While in jail, he demanded to oust Chen for pursuing wider profit margins at the cost of market shares by closing underperforming outlets.
To thwart Huang's attempt, Gome said it had completed a 19-month network optimization and was embarking on expansions again as a vital part of its five-year strategy.
Gome aims to keep its leading position in first-tier cities with a focus on five major markets, including Shanghai, Beijing, Guangdong and Sichuan. It will also expand its presence in second and third-tier cities such as Chongqing and Kunming in southwest China.
About 70 new stores will open this month while another 90 will re-open after renovation.
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