Take a minute and try and visualize the inside of a Best Buy store. What comes to mind? For me, it’s rows and rows of CDs, DVDs, video games, and for some reason, appliances. In a world where the media that we consume is increasingly acquired directly through digital channels, is it any wonder that the need for retail outlets that house massive amounts of tangible media merchandise are going the way of the dinosaurs? Sure, they also sell home electronics, sound systems, and accessories, but when was the last time you actually went into a store to shop and compare prices instead of hitting the internet first?
Hence it was no surprise that Best Buy announced (by way of Billboard) the continuation of its transformation from a ‘big-box’ retailer to a smaller, more mobile-focused entity this week. By the fall of 2012, Best Buy will close 50 stores in the US and subsequently open 100 new Best Buy Mobile outlets, smaller storefronts and kiosks that specialize in servicing the growing demand for cell phones, tablets, and e-readers.
As we previously reported, Best Buy has already moved to close all of its big box stores in the UK. Poor sales in the both the US and European markets, coupled with high expenses relating to the buyout of Best Buy’s mobile partner in Europe, Carphone Warehouse, led to a reported $1.23 billion loss last year. Best Buy hopes to cut costs dramatically by not having to fork over huge rent payments for its large stores and through the reduced need for big-tickets inventory items. The company hopes to conversely raise revenues by selling a bunch of cheap mobile phones on street corners across the great US of A.
• Best Buy: http://www.bestbuy.com
