China's Gome electronics retail chain plans to expand by more than 200 stores this year as it prepares for tougher competition from US rivals.

Bloomberg reports that the group will spend more than CNY200 million to open about 200 stores, with 130 run by the listed company.

The company's founder will start a new appliance chain, Pengren, targeting richer consumers with better service and fancier stores. The first store opened in the northern city of Shenyang earlier this month. The company aims to try three or four more in cities such as Beijing and Tianjin before expanding further.