Sections

Best Buy UK stores to close by end of the year

US firm's expansion plans halted due to poor financial performance

Best Buy will close its UK Big Box consumer electronics stores, Internet Retailing reports.

The US retail giant has 11 Big Box stores in the UK, all of which will close before the end of the year, costing the company an estimated 25m to 30m and a further 40m to 45m in asset write downs.

A consultation period with affected staff has already begun, and could potentially delay the final closing date into 2012.

"The eleven Best Buy UK 'Big Box' stores have performed exceptionally at the level of customer satisfaction, but they do not have the national reach to achieve scale and brand economies," said Roger Taylor, CEO of Carphone Warehouse, Best Buy's partner in its UK expansion.

"Our immediate focus is our people and we are confident that the large majority will be offered alternative positions elsewhere in our UK business."

Best Buy opened its first UK store in Thurrock, Essex, in March 2010. It intended to open 90 stores in conjunction with Carphone Warehouse by 2013, but rumours that its UK plans would cease began to surface in June this year.

Related stories

Best Buy tablet will retail for $250 - report

Retail giant's new device will be the cheapest 10-inch tablet on the market

By Matthew Handrahan

Retailer Best Buy sees 3% YoY revenue fall

Latest financial results show drops in revenue and gross profit compared to last year

By Rachel Weber

Latest comments (1)

Benn Achilleas CEO and Founder, Playabl5 years ago
blink and you missed it! forget a 3-5 yr retail strategy - they won't even hit 24months! ridiculous.
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.