Media Markt China shuts down on Monday

Media Markt China Ltd, the electronics chain operated by Germany's Media-Saturn Holding and Foxconn Technology Group, formally closed on Monday.

In contrast with Best Buy Co Inc, which operated in China for five years, Media Markt survived less than three years in the Chinese market. The company, which operated seven stores in Shanghai, said on Feb 27 that it would close all its stores in the country.

Its flagship store on Shanghai's Middle Huaihai Rd will be used as a primary customer care center until April 30.

"The decision to close the stores was made in response to the highly competitive market environment and associated high investments of building and operating the necessary scale," said Media Markt China Ltd on Feb 27.

A notice posted in front of the Media Markt store on Middle Huaihai Rd said that its products were sold out on March 2.

According to a report in the National Business Daily, Media Markt has not yet decided on a possible return to the Chinese market.

Liu Buchen, a home appliances retail industry expert, was quoted by the National Business Daily as saying that the possibility of the company returning is low because of the online and offline competition in China, with fierce competition from local companies.

Best Buy, which left the Chinese market in February 2011, announced its return in 2012. However, so far, it only brought its mobile devices retail business back to China.