Contact Us

Best Buy to Close 50 Stores and Lay Off Hundreds of Employees — Dollars and Sense

Scott Olson, Getty Images

In recent years, electronics retailer Best Buy has struggled to find its footing — and now the chain has announced it will close 50 stores and lay off scores of employees.

More than 400 executive positions will be eliminated from the chain’s corporate headquarters in Richfield, Minn., and thousands of retail positions will also likely disappear. Best Buy projects the move will save the company $250 million in the next fiscal year, and $800 million over the next three years.

“We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices — which will help drive revenue,” CEO Brian Dunn said in a statement. “And, over time, we expect some of the savings will fall to the bottom line.”

Caught between high-end retailers like Apple and deep-discount stores including Amazon, Best Buy has had trouble attracting customers who can easily go online and find better deals. In an effort to compete, the store slashed its prices last year — and wound up losing some $1.2 billion.

Forbes reports Best Buy is trying out new store models that will be smaller and aimed at mobile sales, saying, “These new so-called ‘Connected Stores’ will focus on selling cell phones, tablet computers and e-readers, as well as service plans not offered by Amazon and Walmart.”

[International Business Times]

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for TSM Interactive quickly by connecting your Facebook account. It's just as secure and no password to remember!