Artway sales surge
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Chinese electrical retail giant Gome says sales by its takeover target Artway during the first half year rose 7.85 per cent year on year, to RMB10.858 billion.
Same store sales rose 3.66 per cent overall, while in second tier cities same store sales rose 5.93 per cent, demonstrating the success of Artway’s focus on smaller centres.
Gross profit margin rose by 0.85 percentage points to 20.28 per cent.
Profit for the period was RMB256 million, up 75.34 per cent compared to the same period last year.
Gome Electrical Appliances, the Hong Kong-listed Chinese electrical appliances retailer – is planning to spend US$11.268 billion acquiring rival Artway, allow it to expand its presence from 269 cities to 436 cities across Mainland China.
As at June 30, Artway operated 590 stores, including eight self-owned stores, covering 17 provinces in China (including Jiangsu, Zhejiang, Shanghai, Fujian, Jiangxi, Hunan, Hebei, Henan, Liaoning, Jilin, Heilongjiang, Inner Mongolia, Shanxi, Guizhou, Guangxi, Shaanxi and Xinjiang). It opened 56 stores and closed 22 in the six month period, representing a net increase of 34 stores.
Questions & Answers
Q.What is the total value of Gome's acquisition of Artway?
What is the total value of Gome's acquisition of Artway?
Gome Electrical Appliances is planning to spend US$11.268 billion to acquire Artway. This acquisition aims to expand Gome's presence significantly across Mainland China.
Q.How many cities will Gome operate in after completing the Artway acquisition?
How many cities will Gome operate in after completing the Artway acquisition?
The acquisition of Artway will allow Gome to expand its presence from 269 cities to 436 cities across Mainland China. This represents a substantial increase in its operational footprint.
Q.Which specific areas saw the strongest growth in same store sales for Artway?
Which specific areas saw the strongest growth in same store sales for Artway?
Same store sales rose 3.66 per cent but in second tier cities, they rose by 5.93 per cent. This demonstrates the success of Artway’s focus on smaller centres.
Q.What was the net change in the number of Artway stores during the first half year?
What was the net change in the number of Artway stores during the first half year?
Artway opened 56 stores and closed 22 stores in the six-month period. This resulted in a net increase of 34 stores for the company.
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