Best Buy announced Thursday that it will close 50 big box stores in the United States in an effort to improve its bottom line.
CEO Brian Dunn said in a press release that as the consumer electronics industry evolves, the company is taking “major actions” to improve its operating performance.
The company hopes its new multi-channel strategy will strengthen its portfolio of store formats.
The strategy includes “closing some big box stores, modifying others to our enhanced Connected Store format, and adding Best Buy Mobile stand-alone locations,” Dunn said, noting that the company’s goal is to improve the shopping environment, increase its points of presence and improve performance, in addition to increasing profits.
He added that the coming changes will lower the company’s overall cost structure, allowing it to invest some of the savings into improving customer experiences and more competitive prices.
If all goes as planned, the company will save its first $300 million with the closing 50 stores next year as part of its $800 million multi-year cost reduction program.
Is the Manchester Highlands Best Buy safe?
Franz Kraintz, Manchester's director of planning, zoning and economic development, tells Patch he has not heard anything about the Best Buy closures, nor has he heard any news about the Manchester Highlands location.
"This one would be better than others because of the crossroads, it sits next to two state highways," Kraintz said.
Patch contacted Kelly Groehler, a public relations representative for Best Buy to ask if any St. Louis County or St. Charles County stores would be closing. She offered a prepared statement.
“We are taking the necessary steps this next year to evolve our total retail store strategy, and make it even easier for customers to shop with Best Buy and access our services,” she said, adding that the company hopes that the closing of 50 stores will fuel growth initiatives, including connected stores that will provide better service and product interactivity.
“We 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,” Groehler said.
She said the company would announce the details about specific store locations and timing for closings once they’ve been finalized.
“We are not commenting further at this time,” she said.