Best Buy Closes 50 Stores, Set to Open 100 Mobile Stores

On Saturday, Best Buy slipped out that it's shutting down 50 of its retail stores. In an attempt to avoid the fate of Circuit City (which officially closed in 2009), the retail giant is trimming the fat and cutting 400 corporate jobs and nearly $1 billion dollars in costs. What was odd was that the company indicated it would try and find jobs for those being laid off (which would seemingly counter the effort to actually "cut" jobs). In any case what was even more surprising was the matching announcement that the company would open up 100 new Best Buy Mobile stores in 2013. The new stores will be smaller than their big box counterparts and based on the most profitable side of the business. mobile phones and accessories.

We have to believe that the biggest problem with Best Buy is the constant onslaught of competitive Internet sales. Of course, it wasn't too long ago that Best Buy cut jobs and said it was planning on refocusing on its online business. There is also an increasingly common practice, which we do NOT condone, of using the retailer as a sort of "show floor" where consumers then can shop online using their smart phones and buy from a competitor. While we see and hear of this happening, we feel it is extremely inconsiderate and more or less stealing. If you're going to shop in a retail environment and kick the tires, consider being willing to pay a little more for the convenience of having a physical location to honor the warranty and pick up the unit immediately.

Currently, Best Buy has around 1,400 of its stores across the country and the 50 stores will close by, or during, the Summer. Of course, this announcement comes at a time when former Best Buy CEO Brian Dunn, after suddenly resigning, is being investigated by the board of directors began investigating for "personal conduct" possibly involving a 29 year old associate, according to reports on Forbes and other sources. Also, this has been a difficult quarter, with the company losing $1.7 billion due to restructuring costs.

Will Best Buy pull out of its tail spin or is this the beginning of the end?