Home Depot leaves Beijing

Published:  31 January, 2011

BEIJING: Home Depot, the largest US home improvement retailer by sales, has closed its last store in Beijing, reports the Financial Times.

The decision highlights the difficulties that some western companies face trying to transplant foreign business models into China.

B&Q, Europe's largest home improvement chain, has had similar problems in China with a third of its mainland stores recently closed.

Home Depot, which has closed five stores on the mainland in the past two years, is struggling to find the right business format for one of the world's most difficult home improvement markets, local analysts said.

China does not have a do-it-yourself culture while low wages allow homeowners to employ others to handle home improvement work.

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