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    Media Markt may shut down stores in China: report

    Updated: 2013-01-09 21:39
    ( chinadaily.com.cn)

    Electronic products retailer Media Markt China, owned by Germany's Media-Saturn Holdings and Foxconn Technology, may stop operations in the Chinese market, according to media reports.

    Reuters reported on Tuesday that the board of the German retail giant Metro Group, the owner of the Media Markt brand, is leaning towards pulling Media Markt out of the Chinese market because competition in the local market is tougher than expected.

    Reuters said the Chinese joint venture did not make any final decision yet.

    Media Markt China declined to comment.

    "Any formal decisions, after evaluation of all facts and figures resulting from the test phase, shall be announced by our corporate shareholders in due course. Since all decisions are only in the discretion of our shareholders and since they are still pending, Media Markt China is not in the position to give comments or statements," said Media Markt China in a statement.

    Media Markt has opened seven stores in China since 2010. The first store opened in Shanghai in Nov 2010, and the company was expected to open more than 100 stores across China by 2013.

    Eyeing the tremendous business opportunities, foreign electronic products retailers rushed into the Chinese market in recent years. However, some of their operations are not going as smoothly as planned.

    In early 2011, Best Buy, the United States-based electronic products retailer, closed its nine Best Buy-branded stores in China along with its Shanghai headquarters.

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