North America's largest home appliance chain retailer Best Buy (BBY) says that its first store in China will be open for a trial operation in Shanghai in the last week of December 2006.

Located in a business circle in the Xujiahui area of Shanghai made up of over 130 home appliance chain stores like Gome, Suning and Yongle, local media reports that the first Best Buy's strategy will be to try not to engage in a price war with its entrenched Chinese rivals.

Best Buy's Shanghai store covers a business area of 8000 sqm. Differing from other home appliance retailers, Best Buy Shanghai includes three main specialty brand fields including a top-grade audio and video products area; a special area for kitchen products and Geek Squad, which offers professional technical computer service.

Other home appliance retailers feel no threat from Best Buy now. Local media report that they say Best Buy needs to spend lots of time to get accustomed to the Chinese market before it will ever become successful.

Best Buy operates more than 900 retail stores throughout North America under names like Best Buy, Future Shop, and Magnolia Audio Video.

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