Best Buy considers reopening a store under the Best Buy banner in Shanghai, China, the Star Tribune reports-- even if it closed all nine Chinese branded stores last February.
Back in February Best Buy did say it "might" reopen 2 stores on a later date.
Then again, Best Buy has a successful business in China with Five Star, a major retailer in the territory.
CEO Brian Dunn says the retailer has a strategy of "driving businesses that have earned the right to additional capital while curtailing activities that we believe will not meet our return on investment thresholds"-- invest in what's growing and slash what isn't, in other words.
Is it logical for Best Buy to reopen shop in China, while it struggles in other international territories and its home US)? Best Buy UK is currently facing "strategic review" as global Best Buy earnings drop by -30% Y-o-Y.
Meanwhile a recent report from the Sunday Express suggests Best Buy might even cut and run out completely from the UK-- if not Europe in general, another loss-maker-- rather than bear the recession storm. Judging from the company policy, that might be very likely.
Go Best Buy May Reverse its Reversal in China (The Star Tribune)