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BEST BUY IMPLODES: Closing 50 Stores; Firing 400
I bet this is mostly due to Best Buy running a less than above board operation with massive overhead, having little respect for their loyal customer base, pressure sales tactics and failing to respond to online competitors like Amazon and Overstock.
Electronics retailer Best Buy announced it would close 50 big box locations in the U.S. as it refocuses its operations around mobile.
The company said it will launch 100 new mobile locations as it retools its domestic store format.
The company saw same-store sales decline 2.3 percent during the period, highlighting its difficulties as the U.S. economy gained steam during the first few months of 2012. Best Buy saw weakness across the board, with sales suffering in gaming, notebooks, digital imaging and televisions.
Best Buy has rapidly been trying to turn its operations around as it has seen peers CompUSA and Circuit City fail. Consumers have been using its locations as a testing ground for products before making final purchases at competitors like Amazon and Walmart.
Acknowledging the change, Best Buy Chief Executive Brian Dunn said the company would vastly alter its strategy from its long time big box format to boost returns.
"These changes will also help lower our overall cost structure," Dunn said. "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."
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