Print 19 comment(s) - last by Wurum.. on Nov 8 at 5:00 PM

Best Buy purchases Carphone Warehouse portion of Best Buy Mobile U.S. operations

The consumer electronics market is still feeling the pinch of the poor global economy. Best Buy was able to help put Circuit City out of business in the U.S. a few years ago, but it is now facing its own mortality in the United Kingdom. The Best Buy UK stores were a joint venture with Best Buy and Carphone Warehouse. Carphone Warehouse is a seller of mobile phones and other devices in the UK.
Best Buy UK stores are being shut down because the business continues to lose money. The losses before tax and interest in the six months that ended on September 30 amount to £46.7 million, almost twice the £28.8 million loss the previous year.
Interestingly, customers found the stores very appealing and gave Best Buy UK locations high marks for customer service.
Carphone Warehouse Group CEO Roger Taylor said, “The eleven Best Buy UK ‘Big Box’ stores have performed exceptionally at the level of customer satisfaction, but they do not have the national reach to achieve scale and brand economies. 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.”
The first of the Best Buy UK stores was in Thurrock, Essex and opened in May of 2010. Carphone Warehouse will now expand the Wireless World stores to offer more products with a new range of connected devices. Best Buy has also announced that it will be purchasing the Carphone Warehouse holdings in the U.S. mobile phone joint venture. The purchase of the Carphone Warehouse portion of that venture will cost Best Buy $1.3 billion.
Analyst Anthony Chukjumba from BB&T Capital Markets said, "For Best Buy to be able to no longer have to share 50 percent of the profits of a high-margin, fast-growing business with Carphone Warehouse, from my perspective, is a real positive. (But) it is not a game-changer. Best Buy still has the same challenges they did 24 hours ago -- fairly weak product cycle particularly in flat-panel TVs, increasing competition from Amazon, probably too much retail square footage."

Sources: Reuters, internet Retailing

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best buy is never the best buy
By kleinma on 11/7/2011 12:17:32 PM , Rating: 2
Almost anything you can get at best buy, you can get cheaper on the web, usually with free shipping.

It really is only good for those "gotta have it now" items, or items with mostly fixed prices, like game consoles or iPads.

I actually liked circuit city better, I think best buy has improved its return policy, but it used to be much worse, while CC was very liberal with theirs. I once priced matched a 52" LCD I bought at CC 3 times in a month and saved 500 bucks. Best Buy limited their 30 day price match guarantee to a 1 time refund.

Although I did just last week have to buy a hard drive at best buy because prices on etail stores like newegg were double those of best buy due to the recent thailand flooding. Best Buy doesn't adjust pricing as quick as newegg, so it was the better deal for once.... but it is sad that it takes a natural disaster for BB to be cheaper!

RE: best buy is never the best buy
By tng on 11/7/2011 12:27:58 PM , Rating: 2
I actually liked circuit city better...
Me to.

RE: best buy is never the best buy
By eBob on 11/7/2011 2:00:40 PM , Rating: 1
I agree. Back before online retailing, Circuit City actually had nicer stores and more knowledgeable salespeople while Best Buy was more like a circus. I think that CC shot themselves in the foot when they fired anybody who knew anything about what they were selling. Now we have HHGregg moving in and they are even more ridiculous than BB.

Even when online retailing started to get big, CC had the best in-store pickup service for things that I needed right away.

By Reclaimer77 on 11/7/2011 7:11:29 PM , Rating: 1
Ugh no way, Circuit City was the WORST. Maybe that's why Best Buy is still around and they aren't? Seriously are you kidding me! I cannot even frame into words my loathing for that establishment. Remember the "Assurance Solutions" insurance scam? They would sell $200 warranties with new TV's and then purposely and blatantly sell that warranty contract to a company who would NOT honor it.

By FITCamaro on 11/7/2011 12:59:33 PM , Rating: 1
Of course web stores can sell things cheaper than brick and mortar stores. The question is where is anyone going to work in high school or college if stores like this close all over the place.

Personally I'll spend a few extra dollars to support the local economy. I agree its hard not to shop at Best Buy with Circuit City going out of business. But there are other places that sell TVs, mobile phones, and laptops.

RE: best buy is never the best buy
By Bizarro on 11/7/11, Rating: 0
RE: best buy is never the best buy
By MrBlastman on 11/7/2011 2:23:21 PM , Rating: 4
That financing can quickly add up to be a lot of weight hanging over your head.

By Labotomizer on 11/7/2011 4:58:01 PM , Rating: 2
Not if you're smart going into it and make sure you pay it off on time or keep up with your monthly payments. The problem is when you don't do that. But 0% interest is pretty awesome if you're responsible and have stable employment. That last one is probably the biggest factor.

RE: best buy is never the best buy
By Paj on 11/8/2011 7:30:28 AM , Rating: 2
You know that you actually end up paying more, right?

By tastyratz on 11/8/2011 1:39:52 PM , Rating: 2
I believe the term you were looking for was bend over, not swallow.
If you do the math out on a $500 tv paid out over 2 years at 12% interest: it only works out to $564. But a $500 tv online will probably be 6 or 700 at best buy, so you were better off charging it to a credit card.
Or just ya know, living within your means. It shouldn't take you 3 years to come up with the money for anything you buy at best buy, but if it does you should seriously relook your spending.

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