(Yicai Global) April 10 -- Gome Retail Holdings and French hypermarket chain Carrefour will work together to promote the appliance maker's products in more than 200 of Carrefour's China stores.
Beijing-based Gome will run its own mini stores inside almost all of Carrefour's supermarkets in China, the European retailer's local unit announced today. Payments for goods will go through Carrefour.
The pair began cooperating at the end of last year and Gome already has 11 of the shop-in-shops up and running in Beijing, Shanghai, and other major cities, which have helped increase sales for Carrefour and reduce costs for Gome. They expect to have the mini stores, which offer Gome's best-selling white goods, computers and consumer electrics, operating nationwide by the end of July.
The shop-in-shop model helps reduce Carrefour inventory as Gome will handle stock, Thierry Garnier, chief executive of Carrefour China, told Yicai Global. There is also room for further cooperation along the supply chain as the deal is not based simply on rent, he added, giving a nod to his firm's global procurement center in China.
Carrefour has been investing plenty and developing strategic tie-ups in China over recent years, including a digitization project with tech giant Tencent Holdings, Garnier said, noting that Carrefour Greater China's 2018 profit was up 11-fold at CNY350 million (USD52 million).
Editor: James Boynton