Best Buy's CEO explains why 250 Best Buy Mobile stores are closing

Best Buy's CEO explains why 250 Best Buy Mobile stores are closing
Last month, Best Buy announced that it was shuttering all 250 of its Best Buy Mobile stores by May 31st. If you love mobile devices, you most likely have found yourself browsing inside one of the locations at least once. Best Buy Mobile is usually found inside a shopping mall, and many of them have competition right outside the door in the form of kiosks run by major stateside carriers.

In an interview published on Sunday, Best Buy CEO Hubert Joly explained why he came to the decision to shut Best Buy Mobile. As the executive explained, the stores first opened in 2006 just before the great smartphone boom started. Joly said that at the time, smartphone penetration was low, which presented a great growth opportunity for Best Buy. In addition, margins were high. Now, almost everyone who wants a smartphone in the U.S. owns one, and margins are low.


Besides, as Mr. Joly points out, there is much more room to display and sell smartphones in the big box Best Buy stores. The typical Best Buy Mobile is only 1400 square feet, and represents only 1% of the company's retail square footage. The stores bring in just 1% of corporate revenue. The company has approximately 1,000 retail outlets.

source: BusinessInsider

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6 Comments

1. Phullofphil

Posts: 1728; Member since: Feb 10, 2009

I am sure I am not going to miss them but that’s to bad.

2. bohmcj

Posts: 11; Member since: Mar 19, 2017

It honestly isn’t as bad as it sounds. I worked at one and we hardly got any business. We also were located less than a mile away from a big box. I think it’s a good move for the company.

3. Azonx8472

Posts: 30; Member since: Apr 13, 2013

I work at one. Our store is a two holiday season store with a big box only down the hall at the mall, we actually sell more than them. It's a shame, since we had a great well oiled machine running with the best co-workers.

4. Gsmalltheway

Posts: 264; Member since: Aug 15, 2009

Never saw the point of these. Most of these are in malls and almost everytime there is a regular best buy outside of a mall that sell the exact same things. I do not think this will impact the consumer much since there are a ton of best buys around

5. jeffpom

Posts: 39; Member since: Dec 11, 2016

I do see the point and idea behind them - and think it's a good idea. But - not as Best Buy. Indeed, it's just repetitive then. Most malls have a Best Buy right near it - it's just redundant to be in the mall and have mobile in your store. Perhaps a separate, competing company can find that mobile niche. A provider of all mobile, instead of just one carrier - and specializing in tablet sales - no computers.

6. Junito

Posts: 143; Member since: Feb 12, 2012

No need to explain. They are closing because they're not making money, simple enough.

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