ERP System Helps Gome Grow Retail Distribution Network In China

Chinese electronics and home appliances retailer Gome has published its annual results for 2011, stating that sales in its listed company increased by 17.5% year-on-year to CNY59.821 billion, while its gross profit increased by 16% year-on-year to CNY10.859 billion.

During 2011, the group focuses on both store efficiency and network development. While further expanding its store coverage, the group achieved good results in implementation of new ERP information system; optimization of supply chain and logistic chain; development of e-commerce; and enhancement of its 3c business. In addition, it continued to work with telecom operators, improved diversified operations, and promoted the construction of ODM and OEM systems to raise the group's overall profit ability.

During the reporting period, Gome's sales of individual retail stores increased by 3.1% compared with the previous year. Meanwhile, the listed company opened 282 new stores and closed 29 stores, reaching the total number of 1,079 retail outlets by the end of the reporting period.

In addition, the group has 595 unlisted stores and 63 Dazhong stores on the Chinese mainland, which are also managed by the executive team of the listed company. By the end of the reporting period, the total number of stores operated by Gome reached 1,737, covering 416 cities in China.

According to Zhang Dazhong, chairman of Gome, the group will continue to implement its five-year strategic plan. It will enhance network distribution across China, improve structures of existing stores, accelerate the improvement of operating efficiency, and achieve rapid and stable development, so as to establish Gome as an electronics and home appliances retailer with global competitiveness.

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