Best Buy Enters China

Best Buy Co. Inc. will be entering China, much like it entered Canada, by buying an existing company. Best Buy bought Futureshop a few years ago, and is now buying China’s fourth-largest retailer of appliances and consumer electronics, Jiangsu Five Star Appliance Co., Ltd., which includes 136 stores.

The US$180 million transaction will give Best Buy the majority ownership interest in Five Star, and will include an injection of US$122 million in capital. The remaining interests in Five Star will continue to be owned by its current employees and management team.

“Best Buy is pleased to be entering China’s retail market with Five Star’s management team as our partners,” said Robert Willett, CEO of Best Buy International. “They are strong leaders with considerable customer insights and strong local networks. We are very encouraged by the relationships that have already been forged between our two companies. This relationship complements our other efforts to learn about the Chinese retail environment. In addition to our new work with Five Star, we are moving forward with our plans to open our first Best Buy retail store in China this year.”

Best Buy Enters China [Marketing News]

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