Best Buy to Cut Down Stores

Best Buy recently said it would cut 10 percent of its traditional store square footage in the United States and focus on growing its specialized, smaller Best Buy Mobile concept.

The company plans to have a total of 600 to 800 Best Buy Mobile stores within the next five years, aiming to evolve in a world of ever-smaller, more-versatile gadgets.

Best Buy’s been leaning away from the big-box stores for months. Its best-selling items these days are smaller gadgets like mobile phones and tablets, and with music sales largely gone digital, it doesn’t need the square footage of big-box stores as much. Smaller stores also have better profit margins than the large ones.

Best Buy said it projects to sell 10 million connections in fiscal 2012, primarily at the mobile stores, with “connections” defined as mobile phone, home broadband, mobile broadband and video service units.

 



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