Best Buy UK Goes Under
November 7, 2011 12:05 PM
comment(s) - last by
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."
This article is over a month old, voting and posting comments is disabled
RE: best buy is never the best buy
11/7/2011 7:11:29 PM
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.
"Folks that want porn can buy an Android phone." -- Steve Jobs
Report: Circuit City Mulling Closure of 150 Stores, Massive Job Cuts
October 20, 2008, 3:02 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information