Best Buy to close 50 big-box stores: Lohr Road store's fate unclear
Minnesota-based Best Buy announced plans Thursday to close 50 big-box stores and open 100 stand-alone, mobile locations in the U.S. in fiscal 2013.
The strategy -- to reduce total square footage while adding small store locations -- comes after the company reported a fourth quarter loss of $1.7 billion.
Best Buy, which has about 1,145 U.S. stores, has one location in Washtenaw County, located on Lohr Road in Pittsfield Township. It was not immediately clear whether that store would close.
The company has not released a list detailing which stores will be shuttered.
Photo courtesy of Flickr user DavidErickson
The mobile store concept, launched in 2007, is much smaller than the company’s big-box stores and acts as a full-service wireless retailer, carrying the same mobile products as the larger stores. There are currently 305 mobile locations, with plans to open 600 to 800 by fiscal 2016. As part of this “transformation strategy,” the company also announced plans to grow its domestic online revenue by 15 percent in fiscal 2013.
The plans are expected to cut $250 million in costs in fiscal 2013 and $800 million by fiscal 2015.
“We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices - which will help drive revenue,” said Brian J. Dunn, Best Buy CEO, in a news release.
He added: “At the same time, we will continue to accelerate our key initiatives - growing connections and services, expanding our digital capabilities and growing our business in China.”