Running an electronics retail business in China is tough, as seen by recent exits from the market by U.S.-based Best Buy.
Media Markt China now announces on its official website that the company will be closing its seven electronics retail stores in the country on March 11, 2013.
According to the statement, Media Markt's Chinese stores will remain open until March 11. After this date, the store on Huaihai road, Shanghai, will continue operating as the primary customer care center for Media Markt until it too will close its doors on April 30, 2013.
The decision has been approved by Media Markt China's two major shareholders, Germany's Metro Group and China's Foxconn Group.
Prior to this, Metro Group already announced in mid-January 2013 that it would discontinue the Media Markt business in China.
According to public files, Media Markt China has 750 employees working at its Shanghai headquarters and seven stores.
On behalf of the board of directors, Frank Bussalb, president and chief executive officer of Media Markt China, expressed their thanks to all staff. He thanked the employees for their outstanding work over the past two years. The high-quality customer support and service made a huge contribution to the development of Media Markt in China. The closing of these stores is the result of considering the severe market competition and the huge investment for the establishment and operation of the business.