Best Buy has announced that they will close 50 stores nationwide, the company announced Thursday. Five of those stores slated to close are located in the Twin Cities area.
Stores in Brooklyn Center, Edina, Hutchinson, Lakeville and Rogers are expected to close in the fall, leaving 15 Best Buy stores in the Twin Cities area.
The plan comes as the Richfield-based business reports a net loss of $1.7 billion in the fourth quarter, which ended on March 3, 2012.
“In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance,” Brian J. Dunn, the CEO of Best Buy, said in a written statement. “As part of our multi-channel strategy, we intend to strengthen our portfolio of store formats and footprints — closing some big box stores, modifying others to our enhanced Connected Store format, and adding Best Buy Mobile stand-alone locations — all to provide a better shopping environment for our customers across multiple channels while increasing points of presence, and to improve performance and profitability.”
Best Buy plans to reduce costs by $800 million before 2015, according to a press release from the company. In 2013 alone, Best Buy plans to cut costs by $250 million.
In conjunction with the store closings, Best Buy plans to open 100 Best Buy Mobile “small format stand-alone stores,” in 2013, according to the Best Buy release. In addition, Best Buy plans to cut 400 positions from the corporate office in Richfield.
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