Gome aims to take over rival Suning - paper
(Reuters)
Updated: 2006-08-01 14:24
By contrast, Suning has nearly 400 stores. Number-four player Jiangsu Five
Star Appliances, which U.S. chain Best Buy Inc. said in May it would buy, has
about 200 branches.
"(Paradise chairman) Chen Xiao and myself both agreed that the electronic
retail industry needs further consolidation," Huang was quoted as saying.
Suning, based in the eastern city of Nanjing, has decided to move its
headquarters to Shanghai, China's biggest city and the home base of Paradise, to
compete more aggressively, the newspaper reported.
Last week Suning secured an 800 million yuan ($100 million) bank loan to fund
its expansion.
It reported earnings for the first half of 2006 on Tuesday, saying net profit
jumped 110 percent from a year earlier to 258 million yuan ($32.3 million) on
sales of 11.2 billion yuan, up 58 percent.
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