Best Buy to close 250 mobile phone stores2018-03-01 13:52 by Daniela
Tags: Best Buy
Best Buy CEO Hubert Joly has recently announced that 250 Best Buy Mobile stores around the country will be shut down on May 31, 2018. That represents a significant portion of the Best Buy Mobile stores in North America, but in its quest to become more profitable in the face of increasing competition, Best Buy can't really keep underperforming stores open.
The small retail locations first made an appearance back in 2006 just one year before the introduction of the first generation iPhone.
"We began to open them more than a decade ago, before the iPhone was even launched. Fast forward to 2018 and the mobile-phone business has matured, margins have compressed and the cost of operations in our Mobile stand-alone stores is higher than in our Big Box stores," Joly wrote in a letter to his employees.
Best Buy will continue to offer the same mobile products through its big box stores in the US, of which there are 1,000. It's unclear how many staff are affected by this decision, but Joly said there will be help to find employees new positions within the company. If no new position is found, employees will be offered severance if they leave after May 31 and then help finding a job elsewhere.
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