'In the rapidly changing retail industry in China, it makes sense for an international company like B&Q to review its business regularly to ensure its sustainable and healthy development in the country,' the company said.

Home sales on the mainland have been stagnant for a while, dampening demand for home decoration materials and appliances.

Even after the central government released new stimulus measures, the property market has shown no signs of picking up.

B&Q opened four more outlets this year, with a net increase of one store.

It now has 64 stores in 26 cities on the mainland, below the target it had set - 70 by the end of last year.

Ma Ruiguang of Flyhorses Consulting, a chain store consultancy, said the closures were not surprising, adding that other mainland chain store retailers might follow.

'B&Q had rapid expansion over the past several years along with the property market boom. Now with the market slowing down, the retailer is no doubt under profitability pressure,' said Mr Ma.

'The worst is yet to be over as the financial crisis is expected to hurt China's economy next year. So this may just be the beginning for B&Q and other chain store retailers.'

However, B&Q said it would further invest in the mainland market and continue to expand its workforce there, which now stands at 10,000.

Another top home appliance retailer, Suning Appliance, unveiled a plan on Tuesday to open 50 stores by the end of next month.

Most of Suning's new outlets will be located in third- or fourth-tier cities, to expand market share and improve penetration.

Bucking the trend

The number of stores Suning Appliance plans to open by the end of next month: 50