Thursday Mar 29 2012
Best Buy chain announces plans to close stores and cut its losses
By: Journal Staff and AP reports
No comment on fate of Auburn outlet
Best Buy plans for its North Auburn store were still unknown March 29 after the corporation announced plans to close 50 U.S. big-box stores and open 100 small mobile locations in the U.S. in the coming year. Best Buy’s announcement also included plans to cut $800 million in costs by the 2015 fiscal year. The news came March 29 as the biggest U.S. specialty electronics retailer posted a fiscal fourth quarter loss partly due to restructuring charges. Best Buy operates a store in the Rock Creek Shopping Plaza, at the corner of Bell Road and Highway 49. The corporation’s head office was contacted for a response on the future of the Auburn store – one of 1,450 in the United States. "We are taking the necessary steps this next year to evolve our total retail store strategy, and make it even easier for customers to shop with Best Buy and access our services. To achieve this, one of our first steps will be the closing of 50 U.S. Best Buy stores to fuel growth initiatives that will include Connected Stores that provide better service and product interactivity," said Kelly Groehler of Best Buy Co., Inc."We are deliberate and thoughtful when we make such decisions; we are working to ensure the impact of these 50 store closures on the affected employees will be as minimal as possible, while serving all of our customers in a convenient and satisfying way. On Thursday, March 29, we notified employees at five stores in the Twin Cities area, and one store in the San Antonio area, that their stores will close later this year as Connected Store remodels are completed in their markets. We recognize the impact this news has on the people who deserve respect for the contributions they have made to our business, and for customers who shop these stores today. We will be working to help the employees affected by these closings to find other positions inside Best Buy. ... We will announce details about additional, specific store locations and timing for closings as they are finalized."