2013, the doomsday for entity shops? (2)

Rise and fall of Gome over the decade

Gome made high-profile entry into Hong Kong in November 2003. In its prime, Gome has 20 stores in Hong Kong.

The six stores that are to be closed are all in popular electrical appliances retail locations.

A Gome spokesman said the company in Hong Kong will shift its focus from retail business to bulk trade, and explore the international sourcing operations. Since it was opened in Hong Kong in 2003, over more than nine years, the amount of loss totals approximately 200 million Hong Kong dollars.

Some analysts believe the reasons for Gome's failure are high rental costs and strong competition from local electronics retailers. In addition, over the past few years Gome's boss Huang Guangyu was in prison, and executives changed frequently in Hong Kong Gome, which affects the company's performance.

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