Best Buy to Close 50 Stores
Electronics giant expected to cut 400 employees.
After reporting losses in the fourth quarter and a disappointing holiday season, electronics giant Best Buy Inc is closing 50 stores and shrinking others, according to the Los Angels Times. The company reportedly laid out plans Thursday that include cutting about 400 jobs nationwide. Best Buy has about 1,400 stores nationwide, including one in the city of Loganville.
It is not yet clear where the cuts will be made. However, the company is reported to be opening 100 more smaller Mobile stores that will primarily sell smartphones and tablets. It has 305 of the smaller stores already open. The reported plan is that by 2016 Best Buy will have 800 of the smaller model stores.
Analysts blame the rise of online shopping as well as a weakening in the DVD and CD market as contributing factors in the decline of the big-box store model. Circuit City didn’t survive the changing market place, closing its doors for good in 2009.