Best Buy has failed in the United Kingdom and now plans to close the 11 stores it opened.
Originally planning to open 100 stores in Great Britain, Best Buy has decided to close the 11 that it managed to get open to this point.
Roger Taylor, CEO of the Carphone Warehouse Group (a group partnered with Best Buy in the U.K. venture) said, “The eleven Best Buy UK “Big Box” stores have performed exceptionally at the level of customer satisfaction, but they do not have the national reach to achieve scale and brand economics. Due to the lack of visibility of an acceptable rate of return on historical and future potential investment, we have decided against rolling out more “Big Box” stores and we will be closing our existing stores, subject to consultation with our employees.”
Last year’s loss was reportedly $74.86 million, up from $46.17 million the year before. The cost of the closures is expected to be somewhere in the range of $105-120 million.