Radioshack to open in China
American electronics retail chain Radioshack will open small-format retail stores in China, Taiwan, Hong Kong and Macau.
This comes after Radioshack and Chinese consumer electronics retailer Cybermart agreed to a joint venture in which RadioShack and Cybermart will hold 49 per cent and 51 per cent respectively.
The stores will offer consumer electronic products, accessories and related services and will be owned, leased or franchised by the joint venture or its subsidiaries. The joint venture is scheduled to officially open its first store in Shanghai, China in July 2012.
“We’re focused on testing the business model in Shanghai this year. We’re in the early stages, and the pace of future expansions will be based in part on available real estate and some other factors,” said Radioshack spokesman Eric Bruner.
RadioShack and Cybermart will initially invest US$2.94 million and US$3.06 million respectively.
The joint venture positions RadioShack to broaden its brand reach, leverage brand equity and generate incremental growth and geographic diversification. The Chinese venture is Radioshack’s second JV in Asia after its joint venture with Malaysia’s Berjaya Retail Berhad that expands RadioShack’s global footprint across 10 Southeast Asian countries.
RadioShack’s retail network includes some 4700 company-operated stores in the US and Mexico, 1500 wireless phone centers in the US and more than 1100 dealer and franchise locations worldwide.