Three major Chinese home appliance retailers, Gome, Suning and Yongle, may swap stakes in each other's firms by the end of this year to better fight foreign competitors and better manage their local markets.

It is not known how much stake each will hold, however local media estimates that the figure may be 10%-15%.

The three have not achieved satisfactory sales records in the first five months of this year. As listed companies, they have to continue to open new stores in order increase their sales revenue, but they have also suffer decreasing marginal profit as a result of opening those new stores.

The heavy pressure from price wars and excessive competition has made the three giants decide to unite.

American-based Best Buy recently announced plans to enter China's bustling electronics retailing sector.

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