Chen Xiao, Gome's CEO appointed last week to replace Huang, has said the company is losing its edge in price negotiation with the suppliers, according to some media reports.
That is opening the door for Suning to move into Gome's turf. "It will take time for Gome to recover, and its focus is not on expansion," said Tian Huilan, a retail researcher at Shenzhen-based consultancy First Capital Securities Co Ltd.
Gome spokesperson Wei Xin, in an interview with China Daily yesterday, insisted that the company will not slow down its expansion next year.
The economic slowdown will help big players such as Suning to expand at a lower cost.
Now "opening a new store is less costly", Min said. "That is why we are still aggressive (in expansion)."
The expansion of a government rebate plan, announced on Sunday, is also fuelling home appliance retailers' expansion.
Under the scheme, rural purchasers will receive a 13 percent rebate on the price of televisions up to the value of 2,000 yuan, fridges up to 2,500 yuan, washing machines up to 2,000 yuan, and mobile phones up to 1,000 yuan.
The 4-year plan could spur sales of 480 million such items, equal to 920 billion yuan.
