Retailing, Franchising, and Consumerism Business Intelligence in China


Best Buy Gains Approval To Open Four More Stores In China

In its second quarter financial report the international electronics retailer Best Buy says that it has gained Chinese local government approval to open four new stores in China.

The report, which shows the company's performance from June 1, 2008 to August 30, 2008, says that the company had achieved revenue of USD1.668 billion in its international business over the period, a year-on-year increase of 10.03%. In the Chinese market, its revenue declined because of the effect of earthquake and falling stock prices. However, the company still opened its second store in China at the end of the second quarter. In addition, it confirms that the company has gained the approval of the Chinese government to open four new stores, which are expected to be opened in the next six months.

Bob Willett, CEO and CIO of Best Buy International, stated that the Chinese stock market has a great influence on its retail sales and the drop of the stock index led to the decline of Best Buy's sales in China. The company hopes that China reconstruction efforts will stimulate consumption and help to increase the sales of its stores in next quarter.

Over the last 12 months, Best Buy opened 160 new stores around the world and shut down four unprofitable stores. At the same time, the company expressed its intention to increase its investment in the Chinese market while accelerating its developments in other overseas markets, including Mexico, Turkey, and the European Union.




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