While cutting big box stores in the US and UK, American consumer electronics specialty retailer Best Buy will expand its subsidiary Five Star, an electronics and appliances retailer, in China.

Best Buy acquired 75 per cent stake in Five Star in 2006 and bought the remaining 25 per cent in 2009. At that time it tried to launch its own large format stroes under the Best Buy brand, but failed to gain any market share and later axed them.

According to Best Buy CEO Brian Dunn, the company is on track to take Five Star’s total store count to between 400 and 500 by 2016 from current network of estimated 180 stores.

“One important tenet of our China strategy is the expansion of our profitable Five Star stores,” said Dunn who added that the expansions are aimed at securing US$4 billion sales by 2016.

Best Buy, which collaborated with British telecom retailer Carphone Warehouse, will launch a store-within-a-store concept in July in six Five Star outlets and in another eight outlets in August.

“Its purpose is to bring the combined expertise and success CPW and Best Buy have had in mobile phones and connectivity to additional retail partners around the world,” Dunn said.

Five Star achieved 22 per cent revenue during the last quarter. The electronics chain also opened 38 outlets during the same period.

GB