According to Kingfisher’s fiscal report, B&Q was operating at a loss of 561 million yuan ($82.17 million) as of January 31, 2009. But the economic recovery spurred on by government stimulus did not stop the company’s sales income in the six months leading up to August 1 from declining by 18 percent year-on-year.
But B&Q is not the only foreign company failing in what would appear to be a promising market. The Home Depot pushed into China more than two years ago buying out a local firm’s 12 stores at once. That number dropped this year, as the US-based company closed branches in two of China’s booming second-tier cities, Qingdao and Shenyang, due to flagging income.
OBI AG, the fourth largest home improvement retailer in the world, opened its first store in China in 2000. Five years later, however, the German firm was unable to maintain profits and sold the outlet to B&Q.
Major foreign companies like Britain’s home improvement giant B&Q rushed into China when home ownership soared in the late 1990s, but that trend has reversed itself as domestic competitors with better market knowledge expand.
This month, B&Q, which has been in China since 1999, is cutting the number of stores it operates from 63 to 48 as part of its restructuring plan. Kingfisher, B&Q’s parent company, said closing the stores, revamping existing outlets, and expanding product lines are part of a $164.77 million restructuring plan to help get the retailer back on its feet in what could become its biggest market, and the whole plan is expected to be finished by the end of next year.
Other activists doubted the march would accomplish much. They said the time and money would have been better spent working to persuade voters in Maine and Washington state, where the November ballot will include a measure that would overturn a bill granting same-sex couples many of the benefits of marriage.
A bill introducing same-sex marriage was introduced last week by the District of Columbia Council and is expected to easily pass.
Rep. Barney Frank, an openly gay member of Congress, said the marchers should be lobbying their lawmakers. He said the demonstrations are simply “an emotional release” that do little to pressure Congress.
“The only thing they’re going to be putting pressure on is the grass,” the Massachusetts Democrat said Friday.
Sara Schoonover-Martin, 34, came from Martinsburg, W.Va., with her wife, Nicki, wearing matching veils and pink T-shirts that said “bride” and “I do.” The couple eloped at Martha’s Vineyard in Massachusetts earlier this year.
“This affects my life every day, 365 days a year,” Martin said.
For Lt. Dan Choi, the day began with a jog around Washington’s memorials, calling cadence at 8 a.m. with fellow veterans and supporters before joining the march. A West Point graduate, Arabic speaker and Iraq war veteran, Choi is facing discharge under the military’s “don’t ask, don’t tell” policy for revealing in March that he is gay.
He appeared later at a rally in his Army uniform and a piece of black tape over his mouth.
“Many of us have been discharged from the service because we told the truth,” he said. “But I know that love is worth it.”
Thomas Leysen, president of the Federation of Enterprises in Belgium (EFB), which hosted the forum, told the audience that one of the two major lessons to be learned in the financial crisis was not to slide into protectionism.
“Belgium is small but a very open country. It believes that international trade and investment are key drivers of global growth. EFB is convinced that an open trade system is crucial for guaranteeing a return to viable growth in the coming years,” he said.
Leysen called on world governments to keep the promises to avoid protectionism they made at the G20 summits in Washington, London and Pittsburg.
“I believe that the perspective of the mutually beneficial cooperation between China and the EU has a better future with the joint efforts of the two sides,” said Xi, who was on an official visit to Belgium, the first leg of his five-nation European tour.
Zhong Shan, Chinese vice Minister of Commerce, said the fact that China sent a business delegation with more than 100 Chinese companies to Belgium for trade and investment showed its willingness to join hands with other countries in the fight against the financial crisis.
“The Chinese government stands firmly against protectionism. We hope Chinese and Belgian companies can strengthen their ties and bring the economic and trade relations between the two countries to a new level,” Zhong said.
Political and business leaders from China and Belgium reiterated their opposition against protectionism on Friday amid reports that the European Commission is poised to propose extending anti-dumping duties on Chinese shoes.
“We should take concrete action to fight against all forms of protectionism in trade and investment,” Chinese Vice-President Xi Jinping said in an opening address to the Belgium-China Economic and Trade Forum, which was held in Brussels Friday and brought together more than 300 people from Chinese and Belgian companies.
Xi said further development of China-EU relations faced new challenges as well as opportunities in the face of a number of international issues, including the global financial crisis.
One thing most of the actresses on this list have in common is that they did not carry the films on their own. In Hollywood, it’s still rare for a woman to be the main star. For the most part, women are co-stars or they appear in ensemble films like He’s Just Not That Into You, which was a surprise hit in February, earning $177 million at the box office worldwide.
That film’s success helped Jennifer Connelly take second place on our list. For every dollar Connelly was paid, her films earned an average of $41.
In third place is Rachel McAdams. The young actress is one of the few to really carry a movie, 2005’s Red Eye, which also featured Cillian Murphy. McAdams has scored by appearing in relatively low-budget movies (like Red Eye and 2004’s The Notebook) that have done well at the box office, though none have been massive hits. For every dollar McAdams was paid, her films earned an average of $30.
For past lists we have required that actresses earn at least $5 million per movie, but we decided to waive that this time around. We calculated each star’s estimated earnings on each film (including upfront pay and any earnings from the film’s box office receipts, DVD and TV sales). We then looked at each movie’s estimated budget (not including marketing costs, which are susceptible to accounting chicanery) and box office, DVD and television earnings to figure out an operating income for each film.
We added up each star’s compensation on her last three films and the operating income on those films and divided total operating income by the star’s total compensation to come up with each return on investment number.
The IBRD is the Bank’s institution that provides loans, guarantees, risk management products, and analytical and advisory services to reduce poverty in middle-income and creditworthy poorer countries.
“As a member of international community, China is willing to deepen its cooperation with the World Bank and IMF on the basis of mutual benefit to achieve a balanced and sustainable global development,” said Xie.
The IMF and World Bank annual meetings opened the plenary session here Tuesday, with central bank governors and finance ministers from more than 180 countries focusing on ways to restore global growth and internal reforms of the two institutions.