Drastic adjustment of the two appliance retail giant business strategy 09 – Gome, Suning – HC network appliance industry-hc360

States United States

As the
Home Appliances
Two retail giants,
And Suning Appliance (002024, stock it), after the New Year Development Plan for 2009 to make a different choice: When Gome announced plans to close some stores, when a high-profile Suning Appliance has launched its own store expansion plans .

On February 2 at the
Triple Trading Company
During the general meeting of shareholders, Gome Group Vice President, He Yang Qing said the spokesman, Gome in 2009 will be closed in about 100 stores. He said Yang Qing, the Chinese home appliance chain industry has access to the economy from large-scale development phase, as the country's largest home appliance chain Gome is in the optimization and integration of the best point in time. He said that Gome in 2009 the integration of the network layout, in 1300 the house off the store nearly a hundred poor performance of the store.

In the Feb. 3, the reporter learned that released the Suning Appliance Chain Development Plan 2009, the year will be to open about 200 stores, together with previous announcements by the end of 2008 has opened 812 stores, expected end of 2009, Suning Appliance stores will number about 1,000, further reducing the gap with the number of Gome stores.

As to why the closure of hundreds of Gome stores, in addition to the U.S. State official "optimization and integration," explained, the market has made some speculate, the main view is that: Gome now cash flow has been stretched to close After some stores will help alleviate the pressure.

It is understood that in November last year
Huang Guangyu
After the incident, Gome to appease suppliers, as much as 30 billion yuan by the large single-sourcing program in order to prevent suppliers of funds caused by pressure on the borrower in advance, in addition, bank credit to the country the US's more cautious, resulting in cash flow by GOME greatly. In addition to supporting the above speculation on the grounds that the recent news that the United States or the country will issue new shares to raise funds. According to Reuters, the National Private Investment Corporation U.S. intends to sell 20% stake, to repay maturing debt and to promote within the company's cash flow.

The other hand, its competitors Suning, has launched a store expansion in the war at this time. At the press interview, Suning Appliance securities on behalf of Han Feng said the company's store expansion program has been cautious, though the fourth quarter of 2008, the company's performance down there, but 2009 does not conflict with store expansion plans . It's statistics, Suning stores in Chengdu, about 11, but Gome is 18, when asked in 2009 Suning stores in Chengdu, expansion plans, Han Feng said, everything's Annual Report 2008 mainly, now disclose.

Orient Securities industry analyst Guo Yang believes that by the fourth quarter of 2008, the impact of declines, Orient Securities has Suning performance in 2008 from 0.78 yuan to 0.77 yuan correction, corresponding to 16.22 yuan yesterday's closing price was 11 times PE, is already the lowest valuation of the industry chain. At the same time do not rule out stock due to market pressures continue to have certain extent the possibility of decline. But he said the price to invest in the management of the most outstanding Chinese retail industry, the largest market share of Suning Appliance, the market excess returns will be warmer.

As of yesterday's close, up 2.92% Suning, Gome's H shares which are still being suspended.

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