Best Buy Closing Brick and Mortar Stores in the U.K.

Best Buy appears to be having a bit of trouble pushing its mega store mentality over in Europe and has decided to shutter all 11 of its U.K. pilot big box stores. The electronics chain crunched the numbers and came to the conclusion that it makes more financial sense to refocus its efforts in Europe on its installed base of 2,500 small box stores.

"Best Buy Europe launched a big box format test in the U.K. in April 2010, ultimately resulting in 11 stores. Based on challenging economic conditions and profit expectations of these stores, Best Buy Europe is announcing that it plans to close all 11 of these stores effective at the end of the calendar year," Best Buy said in a statement. "As required in the U.K., Best Buy Europe will conduct a consultation of the affected employees regarding the closure of the pilot stores. In the future, Best Buy Europe will leverage the strength of the installed base of approximately 2,500 small box mobility stores and upgrade many to the 'Wireless World' store by taking its historically successful format to the next level of store experience and service and incorporating an even wider range of connectivity devices."


Image Source: Flickr (Rob Boudon)

It's never good when a company throws around terms and phrases like "challenging economic conditions," and in this case, it will result in Best Buy taking a pre-tax restructuring charge of $250 to $270 million (of which approximately $140 to $150 million will be attributable to Best Buy.) for its second half of fiscal 2012.
Via:  Best Buy
Comments
LLeCompte 3 years ago

Bby needs to do something, they have been losing money for well over a year. When I use to work there, they were always saying we needed to sell more because the company wasn't doing well. I guess when you over charge for hdmi cables people start to catch on. Bby mobile is awesome, being that you don't have to deal with rebates. Being that mobile is their only bright spot right now, that's why they are pushing mobile so hard this holiday season

AKwyn 3 years ago

@LLeCompete I have to agree... I mean compared to the online stores, there is nothing much they can offer. I mean if I ever want to see what types of TV's there are and how good they look well, it's there but they cost a lot and well I'm not willing to struggle with Best Buy if anything goes wrong...

The games and video games are also a good selling point but again, I can get these games elsewhere or on the internet so why even bother?

I will admit that Best Buy has some sort of a purpose but in this market, it's hard to find that purpose.

Inspector 3 years ago

agreed compte, not many people go there for electronics unless its dead cheap cause they overprice anyways. Service isn't the best... sometimes screwing u over. Well lets just say no techy would shop there most of the times.

omegadraco 3 years ago

Can't stand best buy... Especially when their employees don't even know about consumer rights. Tried to use a Disney coupon their at one point(they do accept manufacturer coupons) they said I couldn't use it with their sale. Went to Target next door who had the same sale and they had no problem.

thunderdan602 3 years ago

I'm not stocked. They are way over priced and the staff are ignorant fan boys.

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