I wonder why Best Buy is closing stores? Humm…. Complacency comes to mind. The same thing that happen to Microsoft. They used to be leader of technology. Then they got too became very comfortable in their own skin. They were the go to company for enterprise then what happen? When you thought of smart phones. It was RIM and Windows. Both companies didn’t innovate or take into account what was coming up in tech. Now they are both scrambling for a new product to get back into the game. When you are big box store on the other hand you don’t have that option. You don’t really have a product to call your own. That is why Best Buy plans to close 50 of its big box retail locations.
What I am surprised by is that it is only closing so few. Mike Mikan took over as the CEO for Brian Dunn. Brian is a great leader and a phenomenal CEO. The circumstances in which he leaves the company he help build is reminiscent of when the late Steve Jobs was forced out of the company he birth into life. Jobs was unappreciated but in the end due to the performance on the company was welcomed back into the fold. Mike promptly did what Brian would not do. He gave the order to close 50 stores ASAP. May 12th is the deadline to shut them all down . Best Buy said that it will try to move employees to new locations but budgets as they are; I don’t see that happening. Best Buy Mobile stores are still open and as of now there are no plans to close them down. I love Best Buy but tis time to move to online. Although Store 832 needs stay open. The full press release is below.
PRESS RELEASE:
Best Buy Confirms Closure Plans for Remaining 42 U.S. Big Box Stores
Brings total of store closures to 50 by end of 2012
Most locations will permanently close by May 12; three additional locations to close by late summer
RICHFIELD, Minn. – April 14, 2012 – Best Buy announced plans March 29, 2012 to close 50 U.S. stores as part of a number of key initiatives for this year. To date, we have closed two stores this year (one in Kansas City, Mo., and one in Scottsdale, Ariz.), plus have notified five Twin Cities stores and one San Antonio store that they will close later this year.
This morning, we have confirmed the remaining 42 store locations that will close. A complete list of store locations can be found at the end of this statement. Employees of these 42 stores have been notified this morning.
This was not an easy decision to make. We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for the contributions they have made to our business.
We will be working to help these employees find other positions inside Best Buy. If they don’t find new positions, or if they choose not to work at a different location, a transition including severance packages will be available.
Three of these 42 locations remain open today, Saturday; the rest of the affected stores are closed today, and will reopen Sunday, April 15. Customers currently doing business with these stores are being contacted today.
We expect most of these stores will permanently close by May 12. Three additional locations are expected to permanently close later this summer. 2
Best Buy continues to have additional retail store locations – big boxes and standalone Best Buy Mobile stores – for customers to choose from in these affected locations.
More broadly, our previously announced retail store actions are intended to increase points of presence, while decreasing overall square footage, for increased flexibility – including key store remodels with a new Connected Store format, while continuing to build out the successful Best Buy Mobile small format stores throughout the U.S. We will continue to share details of such actions as the year progresses. We are committed to making it easier for customers to shop with us, whenever and wherever they want.