Best Buy to Close Stores in China

2011-02-23

Best Buy has officially announced its plans to close all nine of its "Best Buy" branded stores across Mainland China and its regional headquarters in Shanghai. The American electronic retail giant stated that the company will focus on developing a profitable retail platform that will combine its business in China with its wholly-owned subsidiary, Jiangsu Five Star Appliance Company.

With 40 to 50 new store openings planned in 2012 (bringing the total number of stores to 200 to 210), Jiangsu Five Star Appliance Company will offer consumers the retail advantages found in the Best Buy brand.

Ken Patel, president of Best Buy Asia, said that the company's development of Jiangsu Five Star Appliance Company better meets the demands of the Chinese retail market. Patel admitted that the decision to abandon the Best Buy brand in China was hard, but he is confident that the new business strategy of expanding Jiangsu Five Star Appliance Company will best serve the Chinese electronic retail market.

Just three years ago, Best Buy closed its Beijing offices in response to the company's internal adjustments. Opened in 2006, Best Buy's Beijing office was responsible for choosing appropriate locations for new stores and sourcing home appliances and electronics.

Best Buy began operations in China in 2003.

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