Best Buy Announces Store Closings, None in Tri-state Area

Best Buy officials recently announced the electronics retailer will close 50 of its U.S. big box stores and lay off 400 employees at corporate and support levels. On Saturday, the company released a list of 42 of the 50 stores slated for closing. A quick check of the list reveals no Best Buy stores in the tri-state area are shuttering.

“This morning, we have confirmed the remaining 42 store locations [out of 50] that will close,” Best Buy said in a news release. … Employees of these 42 stores have been notified this morning.” [See the full release in our PDF section.]

Best Buy operates half-a-dozen stores in our immediate area, including two in Plymouth Meeting, two in Montgomeryville, one in King of Prussia and one in Collegeville.

The news comes after the company released its fiscal year fourth-quarter earnings, showing a $1.7 billion loss in revenue. In addition, the Global Post reported the company aims to open 50 stores in China by 2013. The news of closures and downed profits are not a surprise to many, as Best Buy reported shortfalls after its third quarter in 2011 as well. In January 2012,  and also suggested it was getting closer and closer to bankruptcy every day.

Going forward, Best Buy's retail store strategy is to increase points of presence, while decreasing overall square footage. Based on results from store pilots conducted in 2010 and 2011, Best Buy will be deploying "at-scale" market tests of its new Connected Store format. Connected Stores are remodeled big box stores that focus on connections, services and multi-channel experience by transforming both the store and the operating environment.

The company expects total big box square footage in these combined test markets to be reduced by almost 20% through store downsizing and closures, while points of presence will increase by more than 20%.

"These changes will also help lower our overall cost structure," CEO of Best Buy Brian J. Dunn said 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."