Best Buy Closing Stores and to Cut Down Jobs

By on Mar 29, 2012 in Business, Lifestyle, Shopping, United States, World Comments

Update: Click Here for Best Buy Closings List 2012 (Partial).

Best Buy Store

Best Buy store in Mountain View, California
Image Credit: Paul Sakuma/AP

Best Buy is closing down US stores and will cut jobs due to weak sales during its key holiday quarter, according to reports by several international news sites on Thursday, March 29, 2012. Best Buy closings will be effective in fiscal 2013.

Reports say that Best Buy Chief Executive Brian Dunn explained that the shift in their business strategy in the current fiscal 2013 will lower the retailer’s overall cost structure. Best Buy will be closing down 50 US big-stores, and replace them with 100 small-format, stand-alone stores. The electronics retailer is expecting an $800 million savings from its restructuring strategy by 2015.

Among the employees affected by the Best Buy job cuts will be 400 individuals in the corporate and support areas.

Best Buy same-store sales reportedly dropped by 2.4 percent during the last quarter. The dropped in sales include a 2.2 percent decline at US Best Buy stores recently opened.

During the fourth quarter of Best Buy that ended last March 3, the electronics retailer reportedly lost $1.7 billion, or $4.89 a share.

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