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U.S. electronics retailer Best Buy to expand in China following first store's opening

U.S. electronics retailer Best Buy to expand in China following first store's opening

U.S. electronics chain Best Buy Co. plans to open one or two more new stores in China over the next year or so following the opening of its Shanghai flagship outlet, company executives said Thursday.
The expansion is part of a broader strategy of making Best Buy Co., the No. 1 American electronics chain, a "global retailer," said Allen U. Lenzmeier, vice chairman of the company.
Although China is at the top of the list, Best Buy is also looking at other markets, Lenzmeier said, declining to say which countries might be considered.
The electronics giant opened its first China store in Shanghai's busy Xujiahui shopping district a month ago and plans a formal grand opening ceremony Friday. At 7,400 square meters (80,000 square feet) the four-story outlet is Best Buy's biggest and most expensive so far, and its first outside North America.
Based on the first month of sales, the outlet is destined to rank among Best Buy's top 10 within the year, Lenzmeier said, while refusing to provide any dollar figures for sales or profit.
"Performance has exceeded our expectations very, very significantly," Lenzmeier said.
Best Buy said it is planning to open one or two other new outlets in leading Chinese cities by mid-2008, with local partner Jiangsu Five Star Appliance Co., China's 14th biggest appliance retailer, opening 20 to 25 of its own stores.
Best Buy acquired a majority stake in Five Star for US$180 million last year but is not now actively seeking any other acquisitions, said Robert A. Willett, chief executive officer of Best Buy International.
Best Buy is one of many foreign retailers taking advantage of the easing of restrictions on foreign competition to try to woo consumers in the world's biggest potential market.
The retailer appears likely to first look to fast-growing markets in the developing world, like China, before setting its sights on more mature markets, such as Japan.
"In the short term, we have other priorities," Willett said.
Japan is "sort of way out there on our list," he added. "It's a very, very tough market, and we need to learn before we tackle very tough markets."
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On the Net:
http://www.bestbuy.com


Updated : 2021-06-14 10:48 GMT+08:00