The U.S. electronics retailer Best Buy will reportedly return to the Chinese market by reopening a flagship store in Shanghai before the end of December 2011.
According to reports in Chinese local media, Wang Jian, global vice president of Best Buy and chief executive officer of Five Star Appliance, confirmed the news while attending the new logo launch ceremony of Five Star Appliance. Wang said that a new Best Buy flagship store featuring Chinese elements will reopen at its former location in Xujiahui, Shanghai. Before the end of 2011, Best Buy will only open one store. However, the company will launch more stores in China in 2012, but the total number will be less than ten.
In February 2011, Best Buy closed all nine stores in China, including six in Shanghai. The company then said it would allocate its remaining assets and businesses to Five Star Appliance. Founded in December 1998, Five Star Appliance was acquired by Best Buy in 2006 and became a wholly-owned subsidiary of the U.S. retailer.
Five Star Appliance recently adopted a new logo. According to Wang, the company will spend one year and invest CNY100 million to complete the full replacement of its logo in seven provinces in China.
For the expansion of new stores, Wang revealed that Five Star Appliance will open 40 to 50 new stores in 2011, including 20 large-scale stores.