Best Buy Co., Inc., is planning its first China shop in June in Shanghai.
The property where the store will be launched is owned by Feidiao Electrics Co. Ltd., and is located in one of Shanghai's most expensive business areas.
It is reported the negotiation between Best Buy and Feidiao began as early as one month ago. Best Buy plans to purchase the 1st to 3rd floors of the building, an area of 6,000 square meters, at about RMB250 million with the cost of decoration and outsourcing included.
Best Buy had orginially planned to open its first China shop in Beijing, use a 15,400 square meters of commercial space vacated by Swedish furniture giant Ikea. But the plan was thwarted as Pengrun Electronics, a subsidiary of China's top electronics retailer GOME, secured the lease contract from the owner of the commercial building at RMB20 million per year.