Gome Electrical expects 2012 losses

Gome Electrical Appliances (0493.HKG) said it will likely post a loss for 2012 after rising rent costs and slowing economic growth hindered consumer demand, Bloomberg reported. The company, the second-largest electronics retailer in China, also cited increased investment in its e-commerce business as a contributor to the losses. For the first three quarters of last year, Gome reported losses of US$110 million, a stark contrast to the US$287 million profits a year earlier. The Beijing-based company shut nine of its stores in the capital in the third quarter last year to help it regain profitability.