Germany's Metro shuts Media Markt in China
Source: Xinhua |
January 17, 2013, Thursday
|
Print Edition
Print Edition
GERMAN retailer giant Metro yesterday said it has decided to end the operation of its Media Markt stores in China.
The group's wholesale business would not be affected, Metro added.
Media Markt, a consumer electronics subsidiary of Metro's Media-Saturn Holdings, entered China in 2010, when it opened its first Chinese flagship store in Shanghai. Media Markt China is now jointly operated by Metro and Foxconn Technology Group.
Metro said the decision to discontinue its business operations in Media Markt China "was prompted by the experiences and forecasts deriving from the two-year test phase that expired at the end of December."
"After carefully analyzing all alternatives, we have decided not to continue our business activities," said Olaf Koch, chairman of the management board of Metro.
Metro said it would be setting aside provisions for the withdrawal.
Koch said it was essential for his company to "concentrate on those business units and markets where we can clearly sharpen our profile and build up a strong market position."
"We will further intensify our successful commitment to Metro Cash & Carry in China. The country is key and a promising market with good future prospects for our wholesale business," he said.
Metro opened 12 wholesale stores in China last year.
Also yesterday, Metro said its sales in the fourth quarter of last year increased by 0.5 percent from a year earlier to 19.4 billion euros (US$25.8 billion). For the full year of 2012, Metro sales was up by 1.2 percent to 66.7 billion euros.
The group's wholesale business would not be affected, Metro added.
Media Markt, a consumer electronics subsidiary of Metro's Media-Saturn Holdings, entered China in 2010, when it opened its first Chinese flagship store in Shanghai. Media Markt China is now jointly operated by Metro and Foxconn Technology Group.
Metro said the decision to discontinue its business operations in Media Markt China "was prompted by the experiences and forecasts deriving from the two-year test phase that expired at the end of December."
"After carefully analyzing all alternatives, we have decided not to continue our business activities," said Olaf Koch, chairman of the management board of Metro.
Metro said it would be setting aside provisions for the withdrawal.
Koch said it was essential for his company to "concentrate on those business units and markets where we can clearly sharpen our profile and build up a strong market position."
"We will further intensify our successful commitment to Metro Cash & Carry in China. The country is key and a promising market with good future prospects for our wholesale business," he said.
Metro opened 12 wholesale stores in China last year.
Also yesterday, Metro said its sales in the fourth quarter of last year increased by 0.5 percent from a year earlier to 19.4 billion euros (US$25.8 billion). For the full year of 2012, Metro sales was up by 1.2 percent to 66.7 billion euros.
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