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Best Buy to close 50 stores following $1.7 billion loss

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Best Buy continues on its path of a questionable future as it announces the details from its fourth quarter earnings report. Best Buy lost $1.7 billion in the quarter, but its overall revenue increased 3% to $16.63 billion. Best Buy attributes $2.6 billion of its financial results to its decision to buyout Carphone Warehouse Group’s stake in Best Buy Mobile, and restructuring charges based on store closures in the United Kingdom.

Moving forward, Best Buy is taking drastic steps to increase its bottom line. 50 Best Buy stores are going to close (saving $300 million), 400 positions will be eliminated in “corporate and support areas” (saving $300 million), and Best Buy hopes to save $200 million in the cost of goods it sells.

Best Buy is also reducing the size of some of its stores while opening 100 more standalone Best Buy Mobile stores in its fiscal 2013 year. In a few years time, Best Buy expects to have between 600-800 Best Buy Mobile stores.

Via [Best Buy]

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