Best Buy is set to close about 15 of its stores across the United States this year and reduce its Geek Squad services, which help customers with technology problems.
Best Buy Plans Closures Due to Pandemic
Best Buy intends to shut down several of its stores throughout 2024. As reported by The Hill, this decision is largely influenced by the ongoing effects of the Coronavirus pandemic that began in 2020.
During a fourth-quarter earnings call last month, Best Buy CFO Matthew Bilunas revealed the company's plans to close these locations. This follows the retailer's closure of 24 stores last year.
Bilunas mentioned that Best Buy will "continue to close existing traditional stores," particularly as store leases come up for renewal.
Currently, it is not specified which US stores will be affected by these closures.
Local news station Fox8 reports that a store in Wooster, Ohio, has closed. Earlier this year, Wooster, Ohio, saw the closure of its Joann Fabrics store in February, and another location in Zanesville also shut down in January.
On April 01, 2024, Hudson-based Joann Inc., which operates around 800 stores nationwide, announced it has filed for Chapter 11 bankruptcy. Despite this, the company plans to continue operating as usual.
According to local news network HometownSource, one of its stores in Apple Valley, California, closed early last month.
Best Buy Adjusts Strategy Amid Market Shifts
Best Buy CFO Matthew Bilunas attributes the recent decisions to close stores to changes in consumer spending habits and a dip in product innovation during the pandemic. He also pointed out the challenges faced during the "supply challenge years."
Despite a slowdown in inflation, Best Buy CEO & Director Corie Sue Barry noted that essential costs like food and housing remain high, forcing consumers to prioritize their spending. "And consumers have to prioritize and make trade-off spend decisions," she added on the earnings call.
Barry outlined Best Buy's strategy to adapt by opening smaller stores in new markets with no physical presence and low online sales penetration. This move aims to capture untapped market share.
Furthermore, Best Buy plans to experiment with closing large stores and opening smaller ones nearby to maximize convenience and retain customers. "These learnings will collectively continue to help us refine our forward-looking store strategy," Barry explained.
Just weeks after the earnings call, the Geek Squad division, which offers in-home tech support, experienced layoffs. Affected employees shared their stories with 404 Media, revealing these layoffs' sudden and severe impact.
One former staff member said, "I spent more than half my life with this company," lamenting the personal sacrifices made for a job that ended abruptly.
"Our leadership gave individual calls stating we were being let go because the company couldn't afford to pay us more or less," another ex-employee explained. This shocked many, leading to a flurry of online posts from former Geek Squad employees about their experiences.
Several former Best Buy employees shared photos of their "Agent" badges on Reddit, indicating they had been laid off by posting they were "going sleeper." Best Buy has not yet responded to The US Sun's request for comment on the layoffs.
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