Huang Guangyu's Unresolved Mess Pushed Forward with Wanjia Supermarket - When Can Gome Solve Its Problems?
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On November 20, news emerged that Gome Retail (00493.HK) surged by HK$0.025 on Friday (17th), with a single-day increase of 80.65%, stimulated by the plan to open 10,000 'Gome Supermarkets' in three years.
Gome Retail clarified in an announcement that evening, stating that the company is not the contracting party for the proposed supermarket business. The supermarket operations will be managed by the company's major shareholder, Huang Guangyu, and his affiliates in collaboration with independent third parties.
However, for the market, Huang Guangyu is deeply associated with the 'Gome' brand. The success of the new 'Gome Supermarket' project will have significant implications for both.
Recently, Lanjing Finance received complaints from multiple consumers who reported delays in receiving appliances purchased from Gome Appliances and prolonged difficulties in obtaining refunds for payments made.
Several consumers highlighted that long delays in deliveries and challenges in securing refunds are the primary issues faced by some Gome Appliances customers. Additionally, the large-scale closure of Gome Appliances' offline stores has heightened consumer anxiety.
A consumer from Lanzhou, Gansu, shared with Lanjing Finance that they purchased a dishwasher and a steam oven combo from Gome Appliances in October 2022, totaling approximately ¥20,000, but Gome has yet to deliver the items.
After the pandemic, Gome promised refunds but has been delaying the process. By March, the Gome store where the purchase was made had already closed.
When some consumers submitted litigation requests to the court, they were provided with a pre-prepared document template by the court, indicating that such cases are not isolated incidents.
Similarly, a consumer named Xiao Gao from Shanghai purchased a high-end brand dishwasher worth nearly ¥10,000 at a Gome offline store in October 2022, but Gome has still not delivered the product.
By mid-year, after persistent follow-ups for over six months, the salesperson who initially promoted the dishwasher to her candidly admitted that Gome could no longer fulfill orders. 'It’s been half a year (without deliveries). Now, all Gome stores in Shanghai are closed, except for the after-sales service outlet at Guangxin Yongle.'
When checking the delivery progress at an after-sales store, Xiao Gao discovered that the issue wasn't just Gome's failure to ship on time—the dishwasher manufacturer hadn't even received the order yet.
Blue Whale Finance contacted the dishwasher manufacturer regarding this matter, and the manufacturer appeared unsurprised by consumer inquiries about Gome. "Gome's current financial irregularities have led to supply shortages due to unpaid debts. We still haven't received payment from Gome," they said.
According to the appliance manufacturer's staff, the standard procedure requires Gome to settle payments before the manufacturer can arrange shipments. However, Gome has not only failed to make payments but also has outstanding debts.
Against the backdrop of severely damaged commercial credibility, the rollout of Gome's new project, "Gome Supermarket," clearly faces significant challenges.
As reported by Retail Circle, at the business launch event on October 17, Liu Haoyi, founder of Gome Supermarket, stated: "We have completed the first 100 days of infrastructure development and are about to enter the second critical 100-day phase, which is crucial for everyone. Our strategic goal is to open 230 stores, while my personal target is 500. Once we surpass 500 stores, we will establish a foothold in the snack market."
It is reported that Gome Supermarket also allows franchising, where existing stores can join under the Gome brand.
Media reports indicate that the "10,000 stores in three years" claim originated from a Gome Supermarket TikTok video.
However, a self-proclaimed veteran supermarket professional commented skeptically, arguing that expanding Gome Supermarket through franchising "essentially means they aren't investing their own money but trying to leverage the supermarket model to raise funds." They pointed out that, first, the Gome brand lacks appeal, and franchisees could choose better alternatives. Second, given Gome's current reputation, "who would dare to extend credit or deal with cash-on-delivery when they lack funds? That’s just unrealistic." Lastly, "the snack discount and near-expiry product markets are already mature and fiercely competitive—what edge does Gome have?"
Late Friday night, Gome Retail issued a clarification announcement stating: "The board has taken note of various media reports about Gome Supermarket's plan to establish 10,000 stores within three years."
The board hereby clarifies that the company is not a contracting party for the proposed supermarket business. To the board's knowledge, the proposed supermarket business will be operated by the company's major shareholder Huang Guangyu and his affiliates in cooperation with independent third parties.
The company does not rule out the possibility of exploring new retail project opportunities in the future. Should such opportunities arise, the company will make further announcements.