Chinese mainland electronics and home appliances retailer Gome has reportedly announced plans to withdraw from the Hong Kong retail market and all of its six stores in the marketplace will be closed by March 2013.
According to reports in Hong Kong local media, Gome currently has six retail sites in Hong Kong's Causeway Bay, Yuen Long, Tsuen Wan, Kwun Tong, Tuen Mun, and Tai Po, respectively. Of these six stores, five will be closed on February 1, 2013, and its flagship store in Causeway Bay will be closed on March 16. With this move, about 100 employees of Gome Hong Kong stores will lose their jobs before the Chinese New Year.
Commenting on the news, Gome emphasized that this is only an adjustment of business strategy and the company will not fully withdraw from Hong Kong. Gome Hong Kong said that the employees affected will gain severance payments. They will later announce information about store closure and will sell their goods at low prices. For customers, Gome Hong Kong will make arrangements for after-sales services to ensure consumers' rights are maintained. Interestingly, March 15 is World Consumer Rights Day.
A spokesperson from Gome said Gome Hong Kong will transform from a retail model to a bulk trade development scheme.
In addition, Gome Hong Kong's representative stated that the company is not part of Gome Electrical Appliances Holding Ltd., and the operation and performance of Gome Hong Kong will not affect the operation or financial condition of Gome Electrical Appliances Holding Ltd.