Best Buy to close UK operations, 1,100 jobs in jeopardy - High-Def Digest Forums
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Old 11-07-2011, 10:06 AM
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Default Best Buy to close UK operations, 1,100 jobs in jeopardy

http://www.engadget.com/2011/11/07/b...s-in-jeopardy/

I'm sure that's not very good news for the studios or CE manufacturers.
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Old 11-07-2011, 11:24 AM
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I don't think it's that much of a biggie for the studios/CEs, it's not like they've ever really got established here. They'll be far more worried by the reports coming out of HMV, Comet, DSG, Argos etc etc

BB jumped into the UK marketplace as a complete unknown with a handful of stores, competing against household names who were in turn already being squeezed by on-line box shifters, and in a recession to boot. They really needed to undercut the big-boys, and they either couldn't or wouldn't so the outcome isn't really a great surprise.

Ray Von
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Old 11-07-2011, 11:31 AM
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11 stores that have been open for only 18 months is hardly devastating news.

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Best Buy Europe, the joint venture between Best Buy Inc. and Carphone Warehouse, has been shuttered after just 18 months in business. In that short amount of time, it lost 80 million ($127 million), largely due to consumer belt-tightening and increased competition from cheaper online retailers. Up to 1,100 jobs will be lost at the eleven UK stores currently open in Thurrock, Bristol and Wolverhampton, among other locations, bringing to an end the company's ambitious plan to open 200 stores across Europe. At the same time, the US giant declared it would buy out its European partner's stake in the Best Buy Mobile chain as it continues to pull out of unprofitable foreign operations.
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Old 11-07-2011, 11:44 AM
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This is just a microcosm of Best Buy as a whole. I expect Best Buy to go through some VERY tough times over the next decade. Walmart,Sears,Target,Amazon will make it very difficult on Best Buy.
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Old 11-07-2011, 12:33 PM
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11 stores that have been open for only 18 months is hardly devastating news.
LOL - well it sure isn't good news.
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Old 11-07-2011, 12:35 PM
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First Circuit City, then Borders, now Best Buy. Can't say I feel bad, considering their ridiculous prices on BDs...
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Old 11-07-2011, 12:35 PM
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I agree with Chip. Best Buy is in trouble IMHO (in the US). Amazon, Walmart, Target, etc are all aggresrivel pricing electronics and packaged media and are often in better locations. That said, I think Best Buy is starting to get smarter. They announced that they are going to start carrying many more items on their website that is not in store, and I have noticed their pricing getting more competitive.

But, I have been to several of their flagship stores (Best Buy is based right here in Minnesota) and have been dumbfounded at how poorly they are run. High end 3D demos that are not working in two of their Magnolia stores with employees standing around doing nothing. I honestly try to avoid BB, when I can, but I just purchased a new 3D Epson projector there because with a Rewards Zone coupon they were the cheapest, and I liked the fact I could return the projector easily if there were issues, I went with them. But that is pretty rare.
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Old 11-07-2011, 03:09 PM
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Quote:
Originally Posted by ack_bak View Post
I agree with Chip. Best Buy is in trouble IMHO (in the US). Amazon, Walmart, Target, etc are all aggresrivel pricing electronics and packaged media and are often in better locations. That said, I think Best Buy is starting to get smarter. They announced that they are going to start carrying many more items on their website that is not in store, and I have noticed their pricing getting more competitive.

But, I have been to several of their flagship stores (Best Buy is based right here in Minnesota) and have been dumbfounded at how poorly they are run. High end 3D demos that are not working in two of their Magnolia stores with employees standing around doing nothing. I honestly try to avoid BB, when I can, but I just purchased a new 3D Epson projector there because with a Rewards Zone coupon they were the cheapest, and I liked the fact I could return the projector easily if there were issues, I went with them. But that is pretty rare.
I think Best Buy realizes they can't compete with the on-line retailers when it comes to the "best buy" (oh, the irony). It's a good sign if they are starting to carry more items on their website; however, I'm not surprised considering the shrinking retail footprints given to the music and video departments in their stores. I've noticed this trend in the 3 or 4 stores near me, and several Best Buy employees have confirmed the same thing.

Hopefully, Best Buy will wake up to the reality of their situation and avoid the same mistakes repeated by Circuity City, Borders, etc. If I do buy in-store, it's only because the price (same or slightly less before tax) or convenience (instant gratification, trying it out) outweighs an on-line purchase. Unfortunately, that isn't enough for Best Buy to hang it's hat on if it's going to compete or survive.
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Old 11-07-2011, 03:17 PM
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Quote:
Originally Posted by Ray Von View Post
I don't think it's that much of a biggie for the studios/CEs, it's not like they've ever really got established here.
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Originally Posted by Kosty View Post
11 stores that have been open for only 18 months is hardly devastating news.
Wow didn't realize they'd never even gotten any traction over there.
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Old 11-07-2011, 03:17 PM
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Does Best Buy only sell movies?
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