UPDATED: Best Buy to Close Dozens of U.S. Stores, Cut Employees
Fifty stores U.S. stores could close and 400 employees could lose their jobs, however, the company is planning to open more stores in China by 2013.
Best Buy officials announced today they will close 50 of their U.S. big box stores and lay off 400 employees at corporate and support levels, according to a news release. The news comes after the Richfield-based company released its fiscal year fourth quarter earnings, showing a $1.7 billion loss in revenue. In addition, the Global Post reported the company aims to open 50 stores in China by 2013. The company did not say which stores would close. The news of closures and downed profits are not a surprise to many, as Best Buy reported shortfalls after its third quarter in 2011 as well. In January 2012, a Forbes Magazine article predicted a tough year for the company and also suggested it was getting closer and closer to bankruptcy every day…
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Caitlin Burgess
12:23 pm on Saturday, March 31, 2012
More clarification on the "Connected Stores" model: these stores are smaller and more focused on small, portable electronics such as e-readers and tablets. They will also have a central help desk for people needing things such as a wireless plan for their mobile phone. The Richfield store is being downsized about 20 percent to fit this model. More details on that here: http://patch.com/A-sdRt more ›