Jobs will go as Best Buy to close stores
Around 1,100 jobs could go at Best Buy stores nationwide – including 100 workers at Merry Hill Shopping Centre – as retailer Carphone Warehouse confirmed it is closing all 11 stores across the UK.
Around 1,100 jobs could go at Best Buy stores nationwide – including 100 workers at Merry Hill Shopping Centre – as retailer Carphone Warehouse confirmed it is closing all 11 stores across the UK.
Less than two years ago, the company launched the joint venture with US retailer Best Buy, heralding the new stores as the future of electronics retail.
Today the company has said it is to close the stores, putting 1,100 jobs in jeopardy, including a branch Brierley Hill's Merry Hill centre which opened only last year.
The revelation was made today as bosses unveiled their half-year results.
Best Buy UK operated 11 so-called big box stores across the south east and Midlands.
The business invested heavily in marketing and promotion but the brand suffered widening losses.
Consumer electronics has been one of the hardest-hit sectors during the downturn as shoppers turn their backs on perceived luxury items.
Roger Taylor, CEO of Carphone Warehouse, said: "Due to the lack of visibility of an acceptable rate of return on historical and future potential investment we have decided against rolling out more 'big box' stores and we will be closing our existing stores, subject to consultation with our employees.
"Our immediate focus is our people and we are confident that the large majority will be offered alternative positions elsewhere in our UK business."
Carphone originally planned to open up to 200 Best Buy stores in Europe by 2013 but that number was cut back to 100 in June. The stores' future has since been under review.
The closure of the stores will not mean an end of the Best Buy Europe joint venture. Bosses will instead concentrate on selling electrical goods through revamped Carphone Warehouse stores.
Best Buy US invested £1.1 billion in Carphone during 2008 as the first step to a European rollout.
The closures will hit Best Buy stores in Merry Hill, Aintree, Bristol, Croydon, Derby, Enfield, Hayes, Hedge End, Nottingham, Rotherham and Thurrock.
The Minnesota-based retailer, with 1,300 stores worldwide, wanted to shake up the UK market with its model of expert customer service.
Best Buy UK made a loss of £62 million in its first year and another loss of £47m in just the first half of 2011. Closing the stores will cost a further £70m.
The budget electrical stores offered products ranging from plugs to laptops, cheap dvds to espresso machines, but has suffered because of the economic downturn.
