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Best Buy to Close 50 U.S. Stores

Store closures will result in layoffs for 400 U.S. Best Buy employees.

Best Buy officials announced Thursday the electronics retailer will close 50 of its U.S. stores and lay off 400 employees at corporate and support levels.  On the flip side, the company aims to open 50 stores in China in fiscal year 2013.

Northern Virginia has 10 Best Buy stores, including stores in Springfield on Frontier Drive and in Fairfax at Fair City Mall.

Specific stores targeted for closure have not been announced.

The news comes after the Richfield, Minn.-based company released its fiscal year fourth-quarter earnings, showing a $1.7 billion loss. 

The news of closures and downed profits are not a surprise to many. 

Best Buy reported shortfalls after its third quarter, and a January 2012 Forbes article suggested the company is moving closer to bankruptcy.  "Though the company accounts for almost a third of all U.S. consumer electronics purchases, analysts noted, the company remains a ripe target for more nimble competitors," wrote Larry Downes.

In addition, Best Buy may be falling prey to the trend of "showrooming," where consumers go look at a product in a retail store, but then purchase the item online at a lower price.

Best Buy is planning store remodels on its remaining stores before the 2012 holiday season. 

"These changes will also help lower our overall cost structure," said Best Buy CEO Brian J. Dunn in the release. "We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices — which will help drive revenue. And, over time, we expect some of the savings will fall to the bottom line."

According to the press release, the company is planning $800 million in cost reductions by fiscal year 2015.

j gruden April 02, 2012 at 03:38 PM
please learn grammar before commenting, it's hard to take you seriously when you don't even know the difference between there, their, and they're, losing and loosing.
BurkePatriot April 02, 2012 at 06:17 PM
It's difficult to communicate when a liberal, like yourself, just attacks the messenger and avoids the message altogether. Why waste your time to comment if you don't really care? You don't understand the message? You can read it more than once to understand. I would be glad to help you understand the content then you can help me with the grammar. Importance of the message is number one. Maybe we shouldn't take you seriously with the thoughtless comments you left us to think about. I forget that liberals are all knowing. In Liberty,
BurkePatriot April 03, 2012 at 12:19 PM
J, It's typical for a liberal,like yourself, to look at superficially what was written and not judge content. The lack of consequential intelligence is a mental illness that liberals, like yourself , all have and try to forcefully apply it to others. Attacking, ignoring, pre-judging is why many people like yourself are racists. I'm sure you already are all knowing who's at fault in the Florida shooting case since you get your news from the liberal media. Stop prejudging people. It's immoral and it definitely makes you look like a person that civil people can't take seriously. Liberalism. The illness that keeps on taking. My there be "Hope and Change" in your thinking. I'm sure your for that. How's my grammar today? In Liberty,
Susan Larson April 03, 2012 at 12:25 PM
Dear BurkePatriot and J: Please remember to keep comments on topic. Thank you.
BurkePatriot April 03, 2012 at 01:58 PM
Susan, I did have the comment on topic. The last two I did was to shove the attack back but truthful. No worries. I will be on topic of our jobs. I do enjoy your factual reporting. It is a breath of fresh air. That's why I read your articles. Thank you. In Liberty,

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