Bottom line: Best Buy’s sale of its Five Star chain represents a long-overdue withdrawal from traditional retailing in China, and it would be wise to consider an e-commerce option if it tries to return later.
Some might see retailing giant Best Buy’s (NYSE: BBY) newly announced sale of its Five Star electronics chain as a retreat from China, but I would personally congratulate the company for a shrewd move that was long overdue. That’s because traditional retailing is rapidly dying in China, as shoppers opt for the convenience, better selection and lower prices of e-commerce. What’s more, the traditional electronics retailing sector is already overcrowded and highly competitive, dominated by big national chains led by Suning (Shenzhen: 002024) and Gome (HKEx: 493) Read Full Post…
Just 6 years after coming to China, US home improvement giant Home Depot (NYSE: HD) is shuttering most of its China shops, becoming the latest major foreign retailer to discover that China’s 1.3 billion consumers aren’t quite the same as their peers in the West. Home Depot’s departure follows the equally high-profile closure of US electronics retailing giant Best Buy (NYSE: BBY) stores last year (
