Foxconn to close '10,000 Horses Galloping' stores

Electronics giant Foxconn is closing down its "10,000 Horses Galloping" stores in several mainland provinces, after it announced that Media Markt, an electronics retail chain in East China, will end operations.

Insiders said some "10,000 Horses Galloping" stores have suffered from supply shortages for several months. Some storeowners are thinking about giving up, China Business News said on Thursday.

Foxconn launched the galloping horses project in 2010, in a bid to occupy China's third-tier cities and rural area market. The project encourages employees who have worked with the group for at least five years, with annual performance ratings above the "B" grade for three consecutive years, to join the program.

The group offers business training and seed capital of 300,000 yuan ($47,400) in the form of interest-free loans to each participant. The participant are required to rent spaces of 120 to 200 square meters in their hometowns.

The Foxconn Group confirmed in late February that Media Markt, a consumer electronics retail chain in East China, will end operations of its seven chain stores on March 11.

Media Markt is a joint venture between Foxconn and Germany-based Metro Group with 25 percent and 75 percent stake ratios, respectively. The first Media Markt store was opened in Shanghai in November 2010.