Update: Best Buy's Roseville Store To Stay Open But Retailer IDs Five Twin Cities Stores For Closing

Update: (11:45 p.m. Thursday)

After announcing earlier in the day it plans to close 50 big box stores nationwide, Richfield-based Best Buy said late Thursday night it will close five company stores in the Twin Cities by sometime this fall.

Stores in Edina, Brooklyn Center, Rogers, Lakeville and Hutchinson will close, impacting more than 300 workers, according to Kare11. However, Best Buy's Roseville store is among its some 20 locations that will remain open.

Meanwhile, Best Buy also announced it plans to open 100 smaller and more profitable "Connected Stores," according to KSTP.

"This is not an easy decision to make," Best Buy said in the Kare11 article about the downsizing. "We recognize the impact this news has on the people who deserve respect for the contributions they have made to our business, and for customers who shop these stores today. 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."

, which showed a $1.7 billion loss in revenue.

Before Best Buy's late night announcement, a Twin Cilties retail academic said he didn't expect the company's Roseville store to be on the chopping block. That Best Buy store's proximity to Rosedale Center puts it in a very strong retail trade area, said Dave Brennan, co-director of the Institute for Retailing Excellence at the University of St. Thomas in St. Paul.

Brennan said Best Buy's restructuring announcement was no surprise given its poor holiday salesk, disappointing fourth-quarter results and lack of any new blockbuster consumer electronic products to drive sales. He added, "They (Best Buy) need to have a stronger internet presence."

Asked whether Best Buy is at risk of falling into bankruptcy or even going out of business, Brennan said he doesn't believe the retailer is in any imminent danger.

But he indicated the company needs to down size its store sizes and cut costs to better match its revenue.

(Original story: 9:06 a.m. Thursday)

Best Buy officials announced today they will close 50 of their big box stores  and lay off 400 employees at corporate and support levels, according to a news release.

The Richfield-based consumer electronics retailer did not say which stores would close. has a store in Roseville. 

"Best Buy currently has 20 big-box stores in the Twin Cities, so a 20 percent reduction would be equal to closing four locations," the Pioneer Press reported.  "It also plans to add Best Buy Mobile locations here, perhaps as many as eight small stores, based on the ratios given Thursday."

Best Buy's retail store strategy is to increase points of presence, while decreasing overall square footage. Based on results from store pilots conducted in 2010 and 2011, Best Buy will be deploying "at-scale" market tests of its new Connected Store format in the Twin Cities and San Antonio metro areas. The store remodels are expected to be completed before the 2012 holiday season. Connected Stores are remodeled big box stores that focus on connections, services and multi-channel experience through a total transformation of both the store and the operating environment.

The company expects total big box square footage in these combined test markets to be reduced by almost 20 percent through store downsizing and closures, while points of presence will increase by more than 20 percent.

"These changes will also help lower our overall cost structure," CEO of Best Buy Brian J. Dunn said in the release. "We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices --- which will help drive revenue. And, over time, we expect some of the savings will fall to the bottom line."

To read the entire news release click here.