The retail chain Best Buy announced Thursday that it plans to sell its troubled Chinese Unit Five Star. Buyer will be local Zhejiang Jiayuan Group and the deal will allow the American company to focus on its business in North America. The largest retailer of consumer electronics in the world not disclose the financial terms for the sale of its 184 stores in China. Best Buy leaves China and trying to cope with their Chinese competitors in a crowded market. Other US companies complain that work in the country is becoming more challenging.
“The sale of Five Star suggests such action in Canada or Mexico. Rather, it allows us to focus even more on our business in North America”, said the Chief Executive Officer of the company Hubert Joly. Hubert Joly confirmed that Best Buy will continue to invest in its private label in the country. Chinese business at Best Buy brought about 4% of total sales in the last financial year ended 1st February 2015.
From Jiayuan Group did not respond immediately to requests for comment. Best Buy left the European market last year. The company sold its stake in Carphone Warehouse Group for less than half of their original investment. At that time, many analysts thought the company should also consider leaving the Chinese market. The deal, which is subject to regulatory approval, is expected to close in the first quarter of fiscal 2016.