Back in June we had reports that Best Buy was losing millions in the UK, and were looking to make big changes to turn things round. But now we have the sad news that Best Buy UK stores are set to close for the last time in the country.
The joint venture between the Carphone Warehouse and US retailer Best Buy will come to an end with the closure of eleven stores by the end of this year. An official statement by the Carphone Warehouse announced the news this morning, and could result in over 1,000 job losses.
It now plans to concentrate on its smaller Carphone Warehouse stores after it closes its Best Buy branded large retail outlets. This comes after the company reported loss of £62 million in its first year of trading in the country.
In the statement the company said the stores had achieved good customer feedback since launching in April 2010. Consumers in the country have been feeling the pinch recently and cutting back on spending on items such as the ones that Best Buy sells. The company now plans to consult with employees over the store closures with the intention to close all by the end of 2011, and hopes to redeploy as many as possible to other parts of the company.
It is likely the company will use the busy Christmas period to sell off stock, but the news will come to a shock to staff that will now face an uncertain future. The Carphone Warehouse has also announced an end in its interest in buying a share of Best Buy Mobile US arm.
Does the closure of the Best Buy stores come as a shock to you?