[photopress:bestbuy_shanghai.jpg,full,alignright]Five Star Appliance will spend RMB300 million ($39.38 million) building three logistics centers to serve its stores and Best Buy outlets in east China.
The centers will be in Hangzhou of Zhejiang Province, Nanjing and Suzhou of Jiangsu Province and will cover 80,000 square meters. The centers will be operational by next year.
Wang Jianguo, chairman of Jiangsu Five Star Appliance, said, ‘The centers will cover the distribution to the Five Star stores in Jiangsu, Zhejiang and Anhui provinces as well as future outlets Best Buy will open in these regions.’
The Jiangsu-based home appliance retailer runs 140 stores in the country, mostly in the eastern provinces. It plans to open another 45 outlets by the end of this year.
Sales have increased by double digits but Cheng Jie, marketing and brand director at Five Star declined to give detailed financial figures. She just said the company is doing very well.
Best Buy, which also opened its first Chinese store in Shanghai last December, plans to open another six to seven self-branded stores in the city over the next 18 months before expanding to the rest of China.
Best Buy, the largest consumer electronics retailer in North America, spent US$180 million last year for a major stake in Five Star. The deal gave Best Buy immediate access to Five Star’s 136 stores in China.
Source: Shanghai Daily
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