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Future of MV Best Buy Store Uncertain

The fate of 50 big box stores has not yet been determined, say company officials, who plan to close them 2013.

Future of MV Best Buy Store Uncertain

When consumer electronics and appliance store Best Buy reported last week a loss of $1.7 billion in the fourth quarter of 2012, the news sent chills across Wall Street.

But the company also announced a multi-year cost reduction progam upward of $800 million part of a major transformation to its business plan that would include the closure of 50 stores across the country and 400 layoffs in 2013 "to improve performance and profitability," said CEO Brian Dunn.

Best Buy did not disclose a list of stores on the chopping block, which leaves the on 2460 Charleston Rd. with an uncertain future.

"We are deliberate and thoughtful when we make such decisions," said Kelly Groehler, a company spokeswoman. "We are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. We will announce details about specific store locations and timing for closings once they are finalized."

Analysts explain that Best Buy's move to close stores has a lot to do with the shift by consumers to Internet shopping and the increase of Apple Stores.

In the earnings report, the company detailed plans to save $300 million from cuts in the retail stores, $300 million from corporate and support structural changes, and $200 million from sale of goods.

However, Best Buy will pilot a remodeled "Connected" small store format in the Twin Cities and San Antonio Texas that will focus on their Best Buy Mobile services, which they expect to make permanent from 2013 to 2016 in 600 to 800 stores.

 

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