Newsletter summary
Huang Guangyu signed a framework agreement with Lele Group to explore cooperation plans. Lele, the largest in ChinaPokerbasicsOf the hard discount supermarkets, the number of stores exceeded 4000 in 2023, with annual sales exceeding 40 billion yuan. Gome retail revenue plunged 96% in 2023, exploring the deep ploughing of the retail industry. The cooperation between the two sides may become the path of Gome's turnaround, and Lele does not rule out the possibility of listing.
Text of news flash
[Che Haiyan, vice president of Lele Group, revealed that the cooperative relationship with Gome Group is under discussion and the framework agreement between the two sides has been signed.)
The progress of the cooperation between Lele, China's largest hard discount supermarket, and Gome Group has attracted attention. Huang Guangyu, founder of Gome Group, visited recentlyPokerbasicsLele's retail chain located in Changsha, Hunan Province, had in-depth exchanges with founder Chen Zhengguo and the senior management team. After this visit, the two sides held talks behind closed doors and signed a cooperation agreement, marking a new stage of cooperation between the two sides.
Hard discount model has become a hot word in China's retail industry in 2023, through supply chain optimization to reduce costs to achieve low-price strategy. With its low-price strategy, Lele is unique in discount stores, with more than 4000 stores in 2023 and annual sales of more than 40 billion yuan. The price of Lele's goods is more than 30% cheaper than that of ordinary supermarkets, which is the key to attracting franchisees and consumers.
Gome Retail (00493PokerbasicsHK) faced difficulties in 2023, with full-year revenue plummeting by more than 96%. In order to save itself, Gome continues to send signals of deep cultivation of the retail industry, including entering the real-time retail track and launching its "Gome Real-time Warehouse" and "Gome convenience Store". Huang Guangyu also personally led the construction of unmanned retail project team to create a convenient retail ecology.
The cooperation between Lele and Huang Guangyu is seen as one of the potential ways out of Gome's predicament. Chen Zhengguo said that what the two sides are discussing is how to become bigger and stronger together. The joining of Lele continues to be hot, with the number of new stores and partners doubling every day in 2024. Che Haiyan told time Finance that Lele does not rule out any possibility of future development, including the impact listing with the help of Gome.
Huang Guangyu's listed companies include Gome Retail and Zhongguancun (000931) (000931Pokerbasics.SZ), ST (600898.SH), Gome Financial Technology (0628.HK), closer online entertainment (8172.HK).
