Gome Retail Sales In 2019 Narrowed To 2 Billion 590 Million Yuan, GMV Increased 101% Over The Same Period Last Year.

A few days ago, Gome retail Holdings Limited released its 2019 performance report. The report shows that the group's operating income last year was 59 billion 483 million yuan, down 7.57% from the same period last year, and the gross gross profit margin was about 17.91%, up 1.11% from the previous year's 16.80%, and the net profit loss to the parent company was 2 billion 590 million yuan, narrowing sharply compared with the previous year's loss of 4 billion 887 million yuan.

According to the relevant media combing its past earnings data, Gome retail sales in 2017 showed a downward trend in operating revenue, from 2017 to 2019 revenue fell by 6.6%, 10.63% and 7.57% respectively, and also appeared in 2017 from the company's losses, but the losses in 2019 have narrowed considerably compared with 2018.

Gome retail said that during the reporting period, the company continued to promote the "family life" strategy, adhere to independent innovation and change, and take home as the core, integrate the social electronic business stores, stores and Gome APP comprehensive traffic terminal, and strive to realize the transformation from home appliance retail to "family life" as a whole, the provider, service provider and supply chain exporter.

The announcement revealed that the total volume of transactions during the reporting period (GMV) increased by 2.7% over the same period last year. Among them, the US store GMV grew by about 101%, the county store GMV grew by about 61%, and the new business GMV, such as the family's overall solution and the integration of cabinet and electricity, increased by about 86%. The GMV of intelligent products increased by 43% and the service GMV increased by about 61%. At the same time, the consolidated gross profit margin remained at a high level of about 17.91% of the industry, up 1.11% from 16.80% in the same period last year.

At the end of the reporting period, Gome retailing said it had plenty of cash, and cash and cash equivalents were about 8 billion 187 million yuan.

In addition, Gome retailing said that traditional business has been affected by the strategic transformation of the group. During the reporting period, the sales revenue of 1308 comparable stores in the group was about 49 billion 664 million yuan, down 4.45% from the same period last year. From the perspective of regional sales distribution, the sales revenue of four regions in Beijing, Shanghai, Guangzhou and Shenzhen accounted for 32% of the total sales revenue, compared with 33% in the same period last year.

Although the sales revenue of the first tier cities has declined, Gome retail sales have increased from 4.06% of the same period last year to 7.07% of the total revenue. In 2019, Gome accumulated 1026 stores in the sinking market. According to company information, the company expects to open 2000 new County stores this year. By the end of 2020, 3000 County stores will be distributed in hundreds of cities across the country. The company launched the 100 city plan in 2020: 100 potential cities were selected to build 100 billion annual sales outlets.

The new business segment, including cabinets, home furnishings and home revenue, increased from 4.7% in the same period last year to 8.98% of total revenue. Gome retail expects that the above business will grow further in the future and drive the group's overall revenue growth.