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Gome eyes 2nd-tier cities for expansion

Updated: 2011-08-29 16:59

(Agencies)

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Gome Electrical Appliances Holding Ltd, China's second-largest electronic appliances distributor, said on Monday that 60 percent of its new stores for 2011 will be opened in second-tier Chinese cities, Reuters reported.

Chairman Zhang Dazhong made the comment at a news conference after the company announced its interim results.

Gome posted a 30.1 percent jump in net profit for the first half of 2011 on solid sales growth as it accelerated store expansion, matching analyst forecasts.

The company, which competes with Suning Appliance Co Ltd, recorded 7.4 percent same-store sales growth in the first half and said it aimed to drive same-store growth and expand its store network into lower-tier cities.