Best Buy one of the major tech and appliances retailers is closing down fifty stores, and laying off 400 management and support staff, as the latest quarterly figures show it is bleeding money.
A list of which stores are closing is not available yet or in what countries their operations will be closing due to cost cutting.
Best Buy was originally established 46 years ago starting out with the name Sound of Music, Inc., and changed the name in 1983 to Best Buy.
Following in the tracks of Circuit City in 2009, and the diminishing retailers such as Sears,which closed 53 stores including its Hometown Store in Connecticut.
Best Buy is facing fierce competition from online retailer giants such as Amazon. Best Buy’s (BBY) stock price was off today by more than 8 percent with new stores showing a decline of 2.4% and a staggering 1.7 billion dollar loss for the period of 12 months.
Instead Best Buy announced it will add some 305 Best Buy kiosk type stand alone mobile stores with smaller footprints and costs to a total of up to 800 this year. Next year another 100 smaller mobile stores will be opened to help keep us the flow of revenue. This cost cutting measure will assure the reduction of 800 million dollars by 2015 and a quarter of a billion this year.
Currently, world-wide in it’s 4,100 stores, the entire company employs 180,000 full time employees, as well as part-time and season staffers. The retail chain is going out of business gradually and moving into a mobile store format.