In a joint venture with the Carphone warehouse of the UK on May last year Best Buy opened 11 stores across the UK. This partnership started off promisingly with the store in Thurrock having an opening week where sales figures surpassed that of any Best Buy world wide. This great start probably due to the initial marketing and the buzz about the opening of the chain here in the UK didn’t last too long.
With loses of £83m the surprisingly good start that the company made didn’t last for long, as the numbers of customer dropped dramatically after the original influx in the opening weekend. In the coming week a further lose of £35m for the last half year is expected to be announced. Giving just a quick highlight of the troubles the retail chain is receiving.
Best Buy are not the only electronic retailer in the UK to be struggling with the Comet chain of electronic stores having a ‘major strategic review’ as profits are in decline and there is a worry that the chain is lacking momentum.
The dismal results should not see a complete break down of this partnership as the small joint Carphone Warehouse and Best Buy stores should stay open and the UK best buy website is rumoured to be staying online. However for the larger warehouse type Best Buy stores their days are well and truly numbered.
Src:The verge, Daily Telegraph
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