Best Buy says it will close 50 big box stores, cut 400 jobs | StarTribune.com
Crazy. I figured the demise of Circuit City would be a boon for them.
Originally Posted by redditRoughly 5-7 years ago Best Buy was competing with another company called.. Circuit City. One of the ways they were making sure they kept market share was whenever Circuit City was putting in a bid to open a store somewhere, Best Buy would bid higher and put a store in that exact same location. This caused Best Buy to open a lot of stores that were close to other Best Buy's (roughly 3-6 miles in some cases), but they just wanted to make sure Circuit City didn't get market share.
Fast forward to now, the leases on those stores ending and Best Buy is not renewing them. The store isn't very profitable as it could be because there is another one not too far down the road.
What that article also fails to mention is Best Buy is also going to open an additional 100 stores, two different types (Mobile stores in malls and community stores in smaller markets). Both of these types of stores are much smaller, cost less to run but typically are very profitable due to cell phone sales.
Am I a Best Buy employee? Obviously yes. Do I speak for the company? Nope. Do I plan on working here the rest of my life? Of course not. Just trying to be a bit more accurate than the chicken little the sky is falling that is mentioned in this article is all.