Best Buy, the world’s largest consumer electronics retailer, closed all nine of its own-branded stores in China. In the past five years, Best Buy had also paid USD180 million to acquire the Jiangsu-based Five Star Appliance store chain in 2008 to expand its reach in the country. By the end of 2010, Best Buy operated some 170 stores in China under the two brand names. Some analysts said that Best Buy’s model does not work well in China because it is unable to meet the demands of local consumers, who still prefer to purchase discounted goods. Best Buy-branded stores were hit by price competition from local rivals such as Gome and Sunning which offer lower prices, although Best Buy offers better service. The company plans to open up to 50 branches of its Five Star Appliance chain by February next year, as part of efforts to “refocus on the profitable retail platform”. The company announced the appointment of Five Star co-founder Wang Jian as global Vice President of Best Buy and Chief Executive of Five Star. “The biggest mistake that Best Buy made in China was its slow pace of expansion,” said Zuo Yingjie, Chief Executive of All3c.com, the country’s largest consumer appliance shopping portal. Two stores in Shanghai reopened temporarily to handle complaints, refunds, after-sales and insurance.