Best Buy losing millions in the UK, changes needed

 

By Posted 17 Jun 2011, 10:25

Best Buy launched in the UK to much fanfare and promised to change the way British consumers shop for electronics. Now we have news that Best Buy is losing millions in the UK, and changes are needed.

The company is in a joint venture with the Carphone Warehouse, and has seen the cost of trying to get a foot hold in the UK an expensive one. It has been announced that in its first year the group lost £62.2m according to an article on What Hi-Fi Sound and Vision.

Also See: Labor Day opening hours at Best Buy, Walmart

At the end of the last financial year there were only six Best Buy stores open in the country, and has spent a great deal in setting up plans for a bigger number in future expansion. The group now has ten stores trading with another opening soon. But now the company has put a brake on plans to have up to eighty more stores.

There is also talk the company is thinking of scaling back its current stores, and looking at different store formats. If the company does start shutting stores it won’t be the first time as it recently shut stores in China and Turkey.

In the UK Best Buy biggest rivals are the likes of Curry’s and Comets, who themselves have seen sales drop off with the current financial climate. Many consumers now turn to the internet when buying electronics goods, as they can be cheaper and even have free delivery.

But having smaller more personal stores could be a good thing; many high end Hi-Fi dealers may not have the cheapest prices, but go that extra mile with customer service. Many independent retailers can offer auditions for equipment with knowledgeable advice with set up, and after sales support.

Do you prefer the stack them high sell them cheap approach? Or do you like to get advice and after sales care when buying tech?

  • http://twitter.com/Jon_Torbitt Jonathan

    I have used Best Buy UK several times and they have by far and away the best customer service of any electronics store, more so that smaller retailers, as the range is huge. Having said that, there are no stores within an hour’s drive of me – an oversight in the Home Counties perhaps!

  • Anonymous

    Do you prefer the stack them high sell them cheap approach? Or do you like to get advice and after sales care when buying tech?
    An why we cant have both. Good service at low prices. 

  • Anonymous

    Do you prefer the stack them high sell them cheap approach? Or do you like to get advice and after sales care when buying tech?
    An why we cant have both. Good service at low prices. 

  • Anonymous

    I’ve found them to be pretty damn expensive compared to everywhere else. An example: I was looking at a freeview box in the Thurrock store…went over the road to curries and it was £45 cheaper! Completely mad prices in there…plus they dont make any attempt to advertise…I’ve never seen a single advert on tv, magazines, etc…they stupidly expected the name would be enough…its not, despite how crap the competition may be (I.E all Dixons Group’s poor excuses for shops)