Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
US home electronics firm Best Buy says leaving Chinese market/AFP

World

US home electronics firm Best Buy says leaving Chinese market

US home electronics firm Best Buy says leaving Chinese market/AFP

US home electronics firm Best Buy says leaving Chinese market/AFP

NEW YORK, Dec 4- US home appliance giant Best Buy is leaving the Chinese market, selling its Five Star subsidiary there to a local group, the company said late Thursday.

Five Star, which Best Buy acquired in 2006, operates 184 stores in China. They are identical to the ones that have made the company a fortune in the United States but face stiff competition from online outlets.

Five Star will be bought by real estate developers the Jiayuan Group.

Best Buy did not disclose terms of the transaction but said the sale should not have a significant impact on its earnings.

The Wall Street Journal reported months ago that Best Buy was reconsidering its future in China and said Five Star was worth about $300 million.

Best Buy will however keep a foot in China by continuing to market its house brands such as Modal (cell phone accessories), Dynex and Insignia (TV sets).

The sale will allow Best Buy to concentrate more on its North American activities, Best Buy said in a statement.

Best Buy has long been dominant in the US market but is fighting online outlets which have lured away many of its customers.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...