Best Buy UK Goes Under
November 7, 2011 12:05 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."
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
Report: Circuit City Mulling Closure of 150 Stores, Massive Job Cuts
October 20, 2008, 3:02 PM
Meizu Smartphone - Now Available in US
December 9, 2016, 5:00 AM
3 Budget LED TVs
December 7, 2016, 5:00 AM
How is the BlackBerry DTEK50 Doing Today?
December 6, 2016, 1:00 PM
Best Secure Android Mobile Browsers:
December 5, 2016, 7:24 PM
Latest News, this is how the Moto X (2017) might look
December 3, 2016, 9:02 AM
Fake Apple Chargers Fail Safety Tests
December 2, 2016, 5:00 AM
Most Popular Articles
What Can You Do with Your New Echo Dot?
December 3, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Sound Blaster Z SBX PCIE Gaming Sound Card - Superb High Performance Sound Card
December 6, 2016, 1:00 AM
GizmoTab – Verizon’s new $80 Tablet for Kids
December 4, 2016, 5:30 AM
Foscam R2 Home Security Camera System – High Quality High FHD Security Video Footage with No Monthly Fees
December 1, 2016, 2:00 AM
Latest Blog Posts
Dec 10, 2016, 5:00 AM
Dec 9, 2016, 5:00 AM
Latest Tech News
Dec 8, 2016, 5:11 AM
In The News
Dec 7, 2016, 5:00 AM
e Guide: Mobile Security for 2017
Dec 6, 2016, 5:00 AM
Apple Car is Not Dead
Dec 5, 2016, 1:00 AM
Dec 4, 2016, 5:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information