Best Buy is closing 250 mobile stores in the United States
There are 250 Best Buy Mobile stores out there in the United States which serve only to sell mobile devices, but it looks like Best Buy has made a decision to close them down.
Reuters reports today that, based on an internal memo that the publication was able to see, Best Buy has decided to close all 250 mobile stores in the United States, with the final date already confirmed to be May 31. This decision will not extend to the Best Buy mobile stores that are located in Canada, and Best Buy will continue to sell mobile devices through its big box retail stores across the country and its online store as well.
According to the information at hand, Best Buy’s mobile stores only account for just over one percent of the company’s total profit, and somewhere around 85 percent of the Best Buy mobile stores out there are within three miles of one of Best Buy’s bigger retail stores.
Best Buy Chief Executive Hubert Joly said in the memo that the mobile stores’ margins had become “compressed” and that “the cost of operations in our mobile standalone stores is higher than in our big box stores”.
As for the employees working at those stores, there seems to be a plan in place. Best Buy will reportedly work to help redeploy those employees to other stores over the next three months. If that isn’t possible, Best Buy will also help with external job searches. And for those who leave after May 31, Best Buy will be providing severance packages.
Have you ever visited a Best Buy Mobile store?