Foreign-owned retail chain to leave China

The decision to cease operations was jointly decided by the retail chain's owners, Germany's Media-Saturn Holdings and Foxconn Technology Group, according to Media Market.

The decision represents the best interests of the two shareholders, and reflects the staggering amount of investments required to stay competitive in the market, said Frank Bussalb, chief executive officer of Media Market.

Bussalb and Foxconn pledged that all obligations made to employees, clients and business partners in the past two years will be fulfilled.

Despite the outcome of the venture, Foxconn indicated that it will continue its efforts in establishing both physical and online retail operations in China, and is seeking for potential partners in China through its subsidiary Foxconn International Holdings (富士康).

In November of 2011, Media-Saturn had announced that investments totaling US$200 million would be allocated over the next two years to expand Media Market, in addition to opening no less than 10 stores in Shanghai alone, and to have its total stores to exceed 100 throughout China by 2015.

The company follows the path of many foreign retailers that have since pulled out of China, however foreign operators still command 20 percent of Shanghai's retail market share, and 80 percent of Shanghai's supermarkets, according to Shanghai Commercial Economic Research Center.

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