Home Depot Announced to Withdraw From the Chinese Market

On the evening of 13 September 2012, a message on the microblogg start to spread - "Home Depot building materials supermarket close shop all over China tonight". At the same time, Sina home from Home Depot insider informed, Home Depot has received a headquarters notice: "Home Depot announced to withdraw from the Chinese market."

The insiders reveal that many Home Depot employees suddenly received a short notice of the closed shop, which previously Home Depot The the Chinese senior may already know this decision to withdraw from the Chinese market headquarters and begin preparations for the aftermath.

It is learned that the home Depot to close all stores in China, some people will be left behind for a period of three months, to deal with the aftermath, including the compensation of employees dismissed for inventory, the liquidation of the settlement with suppliers.

As America's second-largest retail giant, the world's largest home building materials supermarket, Home Depot (HomeDepot) at the cost of over 100 million dollars in 2006, the acquisition of Tianjin Home World, thus allowing the curve to enter the Chinese market. In August 2007, the Home Depot stores in Beijing, Tianjin, Xi'an, Zhengzhou, Shenyang, Qingdao and other cities in succession open for business.

However, the high hopes for the Chinese market, Home Depot copying the U.S. supermarket model, acclimatized lead to the development trend in the Chinese market has been showing a "retrogression". Five years time, the home Depot opened a new store in the Chinese market has not only failed, but in the continuing contraction closed shop.

September to Otctor 2009, Home Depot has announced to close Qingdao and Shenyang store; May 2010, the home was treasure Beijing Fenzhongsi shop closed down closed; November 2010, the home was treasure Tianjin Dongli shop closed; January 2011, the house was treasure Beijing The shop closed. Less than 2 years, Home Depot continuous close five stores, the only remaining seven stores in Tianjin, Xi'an, Zhengzhou. During this period, the home Depot for president also could not hanging on the decline.

Compared to the situation of China's defeat with the Home Depot store mode local enterprises Meikailong, actually home during this period has entered a golden period of rapid development, foreign supermarkets and local stores showing distinct development trend .

Insiders said that the years of losses, is the home Depot ultimately helpless to exit the Chinese market, the main reason has not found a reasonable profit model. Seems in the Chinese resistance Tateie, vice president Zhang Zhiliang, "supermarket model" of development in China has been poor, and Home Depot to withdraw from China is just a thing. In addition, Home Depot, to withdraw from the Chinese market has a certain relationship with the environment of the home market is not good.

Zhang Zhiliang affected by the regulation of the real estate market, the domestic circulation has been showing a shuffling trend channels already starting to show a large number of the dealer's "death", and totally dependent on the supermarket channel companies will face greater difficulties .