Gome Electrical Appliances Holdings Ltd., China's second largest home appliance retail chain operator, swung to a loss in the third quarter from a profit a year earlier due to sluggish demand, rising costs and a loss at its e-commerce business.

Gome and bigger rival Suning Appliance are both being pressured by weak consumer demand. Consumers have eroded spending on appliances such as televisions, refrigerators and washing machines.

Gome, which is backed by private equity firm Bain Capital, recorded a net loss of 686.7 million yuan ($110.22 million) for the nine months ending in September, against a 1.79-billion-yuan ($287.30-million) profit a year earlier. Revenue fell 18 percent to 36.06 billion yuan ($5.79 billion).

Its net loss amounted to 185.6 million yuan ($29.76 million) for the July-September quarter, compared with a 539-million-yuan ($86.51 million) profit a year ago.