The 10 year strategic cooperation agreement between the two groups allows Gome to manage the electrical appliance counters in Wumart's stores. Beijing, Tianjin and Hebei provinces will be the first regions to see this new format.
A win-win situation
For Wumart, the cooperation enhances its competitive advantage in the electrical appliance category, providing shoppers with more options as well as better in-store experience. It could also benefit from Gome's experience in supply chain and after-sales services.
It is in line with Gome's plan to close about 50 stores in 2014 and partner up with department stores and hypermarket chains to expand in third- and fourth-tier cities. Gome has also reached agreement with Guangzhou Mopark Department Store to operate electrical appliance counters in Mopark malls.
More on Wumart Group
Explore the Wumart profile on Retail Analysis, including Snapshot, latest news and store visits - click here