Best Buy To Close 250 Mobile Stores This Year
Electronics retailer Best Buy Inc. will shutter 250 U.S. mobile stores by May 31, according to reports.
The stores contributed just over 1% to Best Buy’s overall revenue, and account for 1% of the company’s total footprint, according to Reuters.
The company has been working to recover from plunging sales that ate into profits for roughly six years. As a result, it has enhanced its customer service offerings and lowered prices for online purchases to remain competitive against e-commerce giants like Amazon, Reuters reports. And the strategic move has paid off — same-store sales increased six quarters in the last two years.
Employees affected by the closures will be moved to different divisions within the company, according to reports, and staff who leave after May 31 will receive severance packages.
Best Buy mobile stores average about 1,400 SF, compared to Best Buy’s average 40K SF locations. Stores in Canada will not be affected by the closures.