Feeds

Best Buy to shutter all UK megastores

Dixons sent 'em packing

Boost IT visibility and business value

Best Buy's big box experiment in Europe is over: the US retailer is set to close its megastores and retreat into Carphone Warehouse (CPW) shops.

In a joint venture with CPW launched last year, Best Buy opened 11 giant outlets in the UK, employing some 1,100 staff, all of which will be shuttered.

The battered retail sector forced Best Buy to freeze store expansion plans as losses for the joint venture tripled in the last full financial year. The JV is expected to be £35m in the red when half-year figures are released this week.

“After conducting a thorough strategic review of our operations, we believe that our capital investment and ‘connectivity’ strategy should be prioritised within our Carphone Warehouse stores as they offer a higher and proven rate of return," said Andrew Harrison, CEO of Best Buy Europe.

"The technology world has changed substantially since 2008 and we are confident we will best serve our customers by investing in a single brand and format rather than two," he added.

A spokesman for CPW told El Reg he is "confident" that the vast majority of Best Buy employees, who are today entering a 90-day consultation period and have been given another three months of notice, will be employed within the Carphone Warehouse group at its Wireless World stores.

CPW currently has 805 stores in the UK, and has converted 141 to include the Wireless World boutique. It plans to reformat between 350 and 400 stores in total by the end of its fiscal 2012 in April.

The spokesman said "fairly high attrition rates" in its High Street operation would also create positions for some of the impacted Best Buy staff.

Best Buy's delayed entry into the UK meant that it faced a collapse in consumer spending and gave arch rival Dixons time to raise the defences. ®

The essential guide to IT transformation

More from The Register

next story
Apple takes blade to 13-inch MacBook Pro with Retina display
Shaves price, not screen on mid-2014 model
Top Gun display for your CAR: Heads-up fighter pilot tech
Sadly Navdy kit doesn't include Sidewinder missile to blast traffic
iPhone 6 flip tip slips in Aussie's clip: Apple's 'reversible USB' leaks
New plug not compatible with official Type-C, according to fresh rumors
FEAST YOUR EYES: Samsung's Galaxy Alpha has an 'entirely new appearance'
Wow, it looks like nothing else on the market, for sure
YES YES YES! Apple patents mousy, pressure-sensing iVibrator
Fanbois prepare to experience the great Cupertin-O
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
TV transport tech, part 1: From server to sofa at the touch of a button
You won't believe how much goes into today's telly tech
Things are looking up in Flappy Bird sequel
'Swing Copters' offers the same gameplay but in a different direction
NVIDIA claims first 64-bit ARMv8 SoC for Androids
Mile-High 'Denver' Tegra K1 successor said to rival PC performance
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.