Best Buy Closing Stores; Status of Ellisville Location Unknown

announced Thursday that it will close 50 big box stores in the United States in an effort to make the company more profitable, though whether locations such as the one in Ellisville will be included has not been announced.

CEO Brian Dunn said in a press release that as the consumer electronics industry evolves, the company is taking “major actions” to improve its operating performance.

The company hopes its new multi-channel strategy will strengthen its portfolio of store formats.

The strategy includes “closing some big box stores, modifying others to our enhanced Connected Store format, and adding Best Buy Mobile stand-alone locations,” Dunn said, noting that the company’s goal is to improve the shopping environment, increase its points of presence and improve performance, in addition to increasing profits.

He added that the coming changes will lower the company’s overall cost structure, allowing it to invest some of the savings into improving customer experiences and more competitive prices.

If all goes as planned, the company will save its first $300 million with the closing 50 stores next year as part of its $800 million multi-year cost reduction program.

Is the safe?

A manager on duty at Best Buy in Ellisville declined to provide any details about the announcement.

"Even if I did have any information, I wouldn't be able to discuss it," he said. "The media would probably find out as soon as we do."

Patch contacted Kelly Groehler, a public relations representative for Best Buy to ask if any of the St. Louis or St. Charles county stores would be closing. She offered the following statement:

“We are taking the necessary steps this next year to evolve our total retail store strategy, and make it even easier for customers to shop with Best Buy and access our services,” she said, adding that the company hopes that the closing of 50 stores will fuel growth initiatives, including connected stores that will provide better service and product interactivity.

“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,” Groehler said.

She said the company would announce the details about specific store locations and timing for closings once they’ve been finalized.

If the Ellisville location were to close this spring, that decision would mark the second loss of a major electronics retailer within Ballwin and Ellisville in the last year following the in 2011.