Best Buy shuts 17 stores this week, plans to close dozens more.

Akhil A Pillai
Photo byAnna Shvets

Best Buy, the popular electronics retailer known for its signature yellow and blue color scheme, recently announced that it will be closing approximately 17 stores this week, with dozens more to follow in 2023. Best Buy CEO Corie Sue Barry stated during a recent earnings call that the closures were recognized "through our normal stringent lease review process." While the CEO did not provide any additional details on the 17 stores closing this week, it has been reported that locations in Tennessee, Missouri, California, Texas, and Illinois are among those that will be shutting their doors.

Barry also announced during the earnings call that Best Buy will be closing "20 to 30 large format stores" this year, but did not disclose which stores will be impacted or when they will close. However, the company's annual report for fiscal year 2022 stated that Best Buy has plans to close stores through the beginning of 2025. The report also notes that plans to close up to 30 stores are in align "with prior-year trends."

Despite the closures, Best Buy is also implementing strategic moves such as opening 10 outlet stores, remodeling two of its medium-core format stores, and implementing eight experiential store remodels. These changes are aimed at driving sales lift and efficiencies over time, according to Barry. The CEO also acknowledged that the changes were necessary in a world where customers are increasingly digital and the cost to operate physical stores such as rent and labor are unlikely to come down.

The closures come as Best Buy reported a revenue drop of roughly 10 percent in the last quarter, which the retailer attributed to ongoing inflation. Barry anticipates "continued volatility," while Best Buy prepares for "another down year" in the consumer electronics industry as a whole.

Despite the closures, Best Buy remains a significant player in the electronics retail industry, with 925 U.S. stores in operation as of Oct. 29, 2022. The company has shuttered 70 large format stores over the past three years, but continues to remodel and relocate stores, and has opened four new stores since 2020.

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