Best Buy has recently announced its intention to close a number of its stores, as revealed during a recent earnings call. According to Chief Financial Officer Matt Bilunas, the electronics retail giant is planning to shut down between 10 to 15 stores by the year 2025. Bilunas explained that this decision is part of the company’s ongoing strategy, which involves evaluating and closing traditional stores as their leases expire. In the fiscal year 2024, Best Buy closed 24 stores, and a further 10 to 15 closures are expected in fiscal year 2025.
The rationale behind this move is primarily focused on enhancing the overall customer experience. Instead of maintaining larger stores, Best Buy is exploring the concept of flagship stores to gauge customer interest. CEO Corie Barry elaborated on the company’s strategy, mentioning plans to open additional outlet centers and test new formats. These initiatives include establishing smaller locations in markets where Best Buy has limited presence and low omnichannel sales, as well as experimenting with the closure of large-format stores in favor of smaller, more convenient alternatives.
Barry emphasized that these various store formats will cater to different community preferences, with the goal of creating more vibrant and engaging retail centers featuring updated technology. However, specific details regarding the locations of the store closures have not yet been disclosed.
It was confirmed during the earnings call that many of these changes will be implemented within the first half of 2025, indicating a relatively swift timeline for the company’s restructuring efforts.