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Thursday, March 29, 2012

Best Buy is closing 50 stores after losing money



Best Buy, the biggest U.S. specialty electronics retailer announced Thursday that they plan to close 50 big box stores and concentrates on opening 100 small Best Buy mobile outlets in the U.S.The company expects to reduce about $250 million of costs in fiscal year 2013 and is also hoping to cut cost by $800 million by fiscal 2015.

A restructuring charge is a big reason  for company's losing money in its fiscal fourth quarter.Best Buy lost $1.7 billion, or $4.89 per share, for the period ended March 3. That compares with a profit of $651 million, or $1.62 per share, a year ago. The  sales have weakened by the rise of competition from internet rivals like Amazon.com and Apple stores. Shoppers are not flocking to big-box stores like they used  to and just order online which is more convenient. Sales of TVs, digital cameras and videogame consoles have weakened, while sales of tablet computers, smartphones and e-readers have increased online.

Officials at the Richfield, Minn., corporate headquarters said that the 50 stores to be closed have not yet been identified, "We will announce details about specific store locations and timing for closings once they are finalized."

 Best Buy has five big box stores in Southwest Florida: in North Naples, off Airport-Pulling Road; at Coconut Point mall in Estero; at Gulf Coast Town Center in San Carlos Park; in Fort Myers' Page Field Commons, along U.S. 41; and along Interstate 75 in Lee County.

Posted by at 4:38 PM
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23 comments :

  1. Pinay Travel JunkieMarch 30, 2012 at 9:22 AM

    Aww, insane! And it's true. More and more people simply purchase merchandise online since it's really convenient. Oh whatever will happen to its employees? :(

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  2. UnknownMarch 30, 2012 at 9:38 AM

    I am sure that they will recovered their lost, best buy are popular gadget store

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  3. UnknownMarch 30, 2012 at 9:40 AM

    This is not good. How many families will lose their livelihood again... Unemployment rate will shoot up again.. ;(

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  4. ChaMarch 30, 2012 at 9:45 AM

    This is bad. This indicates that the US Economy is slipping into another round of recession and they're barely recovering from the cycle then here is this news again:-( the closure of 50 stores means more unemployment.

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  5. Edmar del Castillo GuquibMarch 30, 2012 at 9:48 AM

    This is not a good news of course, but in the other way around, there is nothing permanent in this world.

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  6. NessMarch 30, 2012 at 10:01 AM

    Oh! I was saddened by this. I loved going to Best Buy when I was in the US for a business trip. Though, I love online shopping als, sometimes, its just nice to go to this type of places. =)

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  7. UnknownMarch 30, 2012 at 10:26 AM

    Can we consider it as a sign of global crisis? Hoping it won't happen in here. :-(

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  8. GagayMDMarch 30, 2012 at 2:41 PM

    whaaaaaaaaaaaaaaaaaat? this is sad? :(

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  9. athenaMarch 30, 2012 at 2:51 PM

    wow. ang daming nag close. tsktsk.

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  10. AdoboTech Digital TechnologyMarch 30, 2012 at 4:43 PM

    That's how is business are, sometimes it just does not workout well

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  11. Joana CincoMarch 30, 2012 at 5:16 PM

    Oh no, what a bad news! I feel bad to the employees.

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  12. Stefanie Laya UyMarch 30, 2012 at 5:32 PM

    looks like the culprit is online shopping. that's really how business is, you have to evolve.

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  13. SioneeMarch 30, 2012 at 5:38 PM

    oh no. I just wonder what's gonna happen to their employees.. tsk tsk tsk!

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  14. itinMarch 30, 2012 at 5:48 PM

    I feel bad for those laid off.

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  15. Vonn Angelie DavidMarch 31, 2012 at 4:19 AM

    ow too bad..

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  16. AbetoyMarch 31, 2012 at 6:35 AM

    So sad to see this once a bog company now losing from its competition


    Check out also my latest post: http://abetoy.blogspot.com/2012/03/earth-hour-2012-philippines-to-lead.html

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  17. lalalaPatriciaMarch 31, 2012 at 8:09 AM

    At sayang but for sure mababawi lng din nla un :)

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  18. lonerzoneMarch 31, 2012 at 10:14 AM

    Along with closing is the lay-off of the many employees they have. Global economic crisis has something to do with this for sure.

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  19. GeekyLovesApril 1, 2012 at 12:43 AM

    sad news indeed. :(

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  20. techieApril 1, 2012 at 4:01 AM

    Hope they can recover from this. They are being beaten by other online stores like Amazon and Ebay.

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  21. markpogiApril 2, 2012 at 11:18 PM

    Yikes! That's bad for all those employed there.

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  22. UnknownApril 3, 2012 at 6:27 AM

    Gosh another US store is going down...and this financial crisis around the world is threatening businesses...I just had delivered an oral report about Euro Crisis...and one of my classmates delivered about the Kodak story...What a great lose for all the once mighty corporations in the United States...The question is, who will be the next?

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  23. JoannaApril 5, 2012 at 12:26 AM

    A blogging community I've been a part of for 6 years now, are mostly American bloggers, very angry and dissatisfied the way the USA politics are handling the economy.

    Living here in Europe, I appreciate the relative economic stability of the country, of course everyone still complains and wants to have more but I only have to remind them how the situation is in the USA and how much more strong and better structured the social security here, compared there, and one reconsiders about bemoaning one's situation!

    I am very sorry for all those people, who would be affected by these developments at Best Buy.

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