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Best Buy to cut 400 workers to save money

Best Buy may have dominated its former competitors to the point where Circuit City went out of business, but it appears Best Buy itself is now under pressure. The electronics giant recently offered up its financial details and among the profits and losses was a tidbit that the company intends to save $800 million in costs.
Some of the cost savings will come with the closure of 50 retail stores. Out of that $800 million, Best Buy wants to save $250 million during the first fiscal year. Not all the savings will be from the closure of retail locations, Best Buy also plans to use information technology to make its support structure more efficient and eliminate 400 positions in the corporate and support workers.
Best Buy currently has 1,100 big-box retail stores.
While it plans to close 50 big-box retail locations, the electronics giant is also planning to open 100 additional Best Buy Mobile small format standalone stores. Some key big-box retail locations will also be redesigned into the so-called "connected store" formats that focus on selling mobile phones and activating video and broadband services. The retail giant also hopes to increase its domestic online sales by 15%.
The latest financial details are for the quarter that ended on March 3 and Best Buy posted a $1.7 billion loss working out to a loss of $4.89 per share compared with a profit in the same quarter of 2011 of $651 million. Some of the loss in the current quarter is attributed to the $2.6 billion in restructuring costs and other charges Best Buy took.
If we ignore restructuring costs and other one-time fees, Best Buy actually posted a profit better than Wall Street predicted at $2.47 per share. Best Buy is projecting earnings of between $3.50 and $3.80 per share for the new fiscal year with revenue of $50 billion.

Source: WSJ

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By StraightCashHomey on 3/29/2012 1:55:40 PM , Rating: 2
I don't remember the last time I bought anything of significant value at Best Buy. I think it was for a kitchen appliance set that had a huge sale discount that would have costs hundreds of dollars to ship from an online site, which would have offset the money I saved. Otherwise, Amazon, Newegg, and other online retailers are where I get my stuff.

I'll occasionally go into Best Buy to see if there are any gadgets that I want, or possibly see what kind of TV looks the best, but I'll end up actually purchasing those items through some other online vendor.

It doesn't sound like they're going to let themselves go the way of Radio Shack, though.

By Dr of crap on 3/29/2012 3:12:16 PM , Rating: 2
But the Best Buy by me moved to a larger location about 4 years ago, and it's always very busy during Xmas. And most weekends as well. I'm guessing some do well, others not so much.

You still need to get a look at some stuff before you buy. It least I get that feeling on most things. There has to be some kind of place to go and LOOK at what you'll buy online - right?

By jimbojimbo on 3/29/2012 5:23:21 PM , Rating: 2
Yes, sadly I used to go to them before deciding if I wanted to order it from Amazon or Newegg. Unless something's on sale the prices at those sites almost always beat BBuy's prices. Now I'll peruse their deals and only go if they have a good sale going on for something, usually movies.

By jmerk on 3/29/2012 6:26:08 PM , Rating: 2
not having a best buy locally. you do the same things as i did when Borders was open. go down look at the book and buy it on amazon. at some point there will be no more brick and mortar stores where we view items and then buy it online.

"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
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