Best Buy closes 17 stores this week, with dozens of others to come
The CEO announced the closing plans yesterday during a call for results.
When you are on the market for a new device or a new gadget, Best Buy is probably one of the first retailers that comes to mind. The sign of signature yellow and blue color palette is a pillar shopping centers across the country, but it could soon be something in the past. Best Buy closes about 17 locations this week, with dozens of others on the file for 2023, managed leaders recently announced. Read the rest to find out which stores close and why.
Read this then: These are all the Walmart locations that close forever by the end of March .
Several stores close tomorrow.
During a March 1st profit call , CEO and director of Best Buy Cori Sue Barry said Best Buy plans to close 17 stores this week, identified "through our normal strict examination process".
Better life previously reported that a Best Buy store in Farragut, Tennessee , closes on March 4, just like a location in Hixson, a suburbs Apart from Chattanooga . The best purchase in St. Joseph, Missouri , also closes tomorrow, and Axios reported that two stores in the Minneapolis-St. Paul region Minnesota also leaves. The best purchase in Shakopee closes definitively, but the Blaine store plans to reopen as a store store, by Axios.
According to several media, the best purchasing locations TeMecula, California ; PFLUGERVILLE, Texas ; And Algonquin, Illinois , also close tomorrow.
During the call for earnings, Barry provided no additional details on the 17 fence stores. Better life contacted Best Buy for more information on the closures, but has not yet heard.
More closures are planned for the rest of 2023.
Tomorrow will one day be sad for Best Buy loyal customers, but buyers can expect many more closures in the coming months. Yesterday, Barry also told investors that the retailer would close "20 to 30 large -format stores this year.
Again, the CEO has not mentioned which stores it will have an impact, nor when they will close exactly. However, she said that Best Buy "will continue to close an average of 15 to 20 traditional large -format stores per year", as part of a lease examination process.
According to the company Annual Report For financial year 2022, Best Buy plans to close the stores until the beginning of 2025.
"We are constantly monitoring store performance as part of an omnichannel strategy focused on the market," said the 2022 report. "While we are approaching the expiration of leases, we assess various options for each location, including If a store must remain open. "
The closing plans of 30 stores are "in accordance with previous trends", noted the retailer in the report.
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Best Buy also gives certain stores a youthful cure.
During the call for results, Barry noted that Best Buy will also open 10 outing stores, renovating two of its stores in medium format and implementing eight experiential store renovations.
"This format has more premium experiences in an area of sale of 35,000 square feet, presenting the best of Best Buy," said Barry about the experiential format. But in general, these movements are strategic.
"By taking a step back, we expect the evolution of our portfolio of stores and our operating model to stimulate the lift of sales and efficiency over time," Barry told investors. "More importantly, these changes are necessary to relieve the pressures of a changing world, a world in which customers control and increasingly digital and the cost to exploit physical stores such as rent and labor 'Work will probably not drop. "
The new coincides with the results of the last quarter, with a drop in income by around 10%. Like many other retailers, Best Buy has awarded this decrease to current inflation. Barry provides for "continuous volatility", while Best Buy is preparing for "another year of decline" for the general public electronics as a whole.
Best Buy has closed several stores in the past three years.
According to a document of the company describing the number of stores, on October 29, 2022, Best Buy had 925 Best Buy stores in operation . Over the past three years, Barry has told investors that Best Buy had closed 70 large -format stores, which represented 7% of his store footprint. However, Best Buy simultaneously continues to renovate and move stores, also opening four new stores since 2020. AE0FCC31AE342FD3A1346EBB1F342FCB
Before the imminent closures of Tennessee and Missouri, Best Buy closed locations on the east and west coasts. At the end of October 2022, Best Buy closed a store on the Upper West Side from New York, and closed another place in Riverbank, California .
