updated 10:50 pm EST, Sun November 6, 2011
Best Buy UK makes quick exit
Best Buy UK made an abrupt exit on Sunday. The British division, a collaboration with Carphone Warehouse, is now expected to formally announce a shutdown within the next few days. Ongoing losses as well as multiple executive departures have been cited as the causes.
The retail outlet was expected to mimic success from North America and reach as many as 200 stores by 2013. It never got beyond 11 stores ending in June, however, and led to losses of £83 million ($132.9 million). The company was partly buoyed in recent months by the success of the iPad and other tablets, but an economic slump, a lack of cellphone sales, and poor locations led to accordingly poor performance.
A model of locating stores in suburban or extra-urban areas, which has worked in the US, didn't work in the UK. Best Buy was also entering a market that was already established, where outlets such as Dixons, PC World, and Carphone Warehouse itself already cover much of local demand and are often closer to home.
The closures will still cut out a significant retail channel in the country and will see Carphone Warehouse retreat back to its core business. [via The Telegraph]