Contact Us

Best Buy Says It Will Close 50 Big Box Stores, Cut 400 Jobs

Photo by Kevork Djansezian/Getty Images

While several elements of the economy, such as the housing market, are on the rebound, some companies are still adapting their business model.  I would think the Duluth store would be safe as that Best Buy store is really the only of its kind in the community.  That’s not to say there’s no competition for the goods and services it does sell.  As this story states, I think we will see less of this huge stores and more smaller specialty stores where you can get some training and other one on one things.

Where is your preferred place to buy computers and electronics?


Best Buy Co. Inc. said Thursday that it will close 50 big box stores this year and eliminate 400 jobs, mostly at its corporate headquarters, in a bid to boost profits amid declining stores sales in the United States.

The Richfield-based consumer electronics giant expects to save about $800 million in three years, including $250 million this year alone.

“I’m not satisfied with the pace of our transformation,” Dunn told analysts during a conference call.

The company has not yet finalized the list of stores to be closed, said spokeswoman Susan Busch.

As of noon, Best Buy stock has fallen nearly $2, or 8 percent, to $24.61, a sign investors are not impressed with Best Buy’s plan.

For the fourth quarter, Best Buy said it lost about $1.7 billion, or $4.89 per share, compared to a profit of $651 million, or $1.62 per share, during the same period a year ago. Sales at stores open for at least a year, a key measure of growth for retailers, fell 2.4 percent.

For the year, the company lost $1.2 billion, or $3.36 per share, compared to a profit of $1.3 billion, or $3.08 per share during fiscal 2011. Same-store sales declined 1.7 percent.

As consumer electronics have become more affordable and ubiquitous in recent years, Best Buy has lost sales to, Wal-Mart, Costco and Target. Last holiday season, the company acknowledged losing TV sales to other big-box stores, as well as retailers such as Staples and Office Depot.

via Best Buy says it will close 50 big box stores, cut 400 jobs |

Best of B105

Recommended for You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for B105 Backstage quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive B105 Backstage contests, events, coupons, presales, and much more delivered to you for FREE.