Best Buy plans to close 10 to 15 stores by 2025, according to recent earnings call (2024)

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Best Buy plans to close 10 to 15 stores by 2025, according to recent earnings call? ›

In the fiscal 2024 year, 24 stores were closed, and Bilunas said Best Buy is looking to close anywhere from 10 to 15 more stores in the fiscal 2025 year. Bilunas added that the chain is also looking to experiment with store remodels, and plans to open outlet centers and new formats to see how consumers react.

BBY has been testing various store formats and operating models. It is on track to deliver the fiscal 2024 store plans, including closing 20-30 large format stores and implementing eight Experience store remodels. Moreover, the company has made investments in the distribution center network to improve productivity.

The electronic retail giant plans to close between 10 to 15 stores by 2025, Chief Financial Officer Matt Bilunas said during the call last month. “As our ongoing practice, we will continue to close existing traditional stores during our rigorous review of stores as their leases come up for renewal.

There are 1,051 Best Buy stores in the United States as of May 21, 2024. The state and territory with the most number of Best Buy locations in the US is California, with 146 stores, which is about 14% of all Best Buy stores in the US.

Best Buy closes 24 stores this year, another 10-15 by next year, company says. The company announced in a recent earnings call that it is shutting down 24 stores in the current fiscal year and it intends to close another 10-15 in the 2025 fiscal year.

Best Buy closed 24 stores in FY 2024 and plans to close 10 to 15 in FY 2025. While the retailer will be focused on improving existing store experiences at scale moving forward, Best Buy is planning to “open a few additional outlet centers and new formats to continue to test two important concepts,” said Barry.

The 2024 Outlook Of Best Buy

As of 2024, Best Buy's closing plans for 20 to 30 locations, with multiple stores already scheduled to close their doors on March 2nd. The impacted stores are Virginia, Stafford, Minnesota, Kansas City, Apple Valley, and Missouri.

(WKBN) — Best Buy is looking to close some stores this year and work to offer a smaller experience for customers in some markets. The company is looking to close 10 to 15 stores, following the closing of 24 stores last year, CFO Matthew Bilunas said during a fourth-quarter earnings call with investors last month.

Typically they have a liquidation sale, and then offer the left over merchandise to suppliers or wholesalers at a reduced rate.

We have reduced our national store hours – Best Buy and Best Buy Mobile Stores – to 11 a.m. to 7 p.m. (with some local variations) We are limiting the number of people in our stores in accordance with social distancing recommendations. We are offering limited services within the store.

What is the future of Best Buy? ›

Best Buy has been rethinking its large store concepts, which function more as exhibitive warehouses than profit-making machines. "We are planning to open a few additional outlet centers and new formats to continue to test two important concepts," Barry explained.

The advent of AI, machine learning, and conversational commerce is set to revolutionize how we shop. The customer's central role in driving change is propelling the industry towards technologies that offer personalised, efficient, and engaging shopping experiences.

Best Buy carried out another round of layoffs and job restructurings last week, with the company cutting some of its sales staff and reducing the pay for others, according to current and former employees who spoke with The Verge. Multiple people said their new pay will be much lower due to the changes.

3 The move proved to be far from ideal, as Best Buy officially withdrew from the Chinese market in 2014 by selling off the majority stake in its local partner, Five Star Appliance.

Ownership of Best Buy is distributed among numerous shareholders who hold shares of its common stock. The largest shareholders are institutional investors and mutual funds who own shares of the company through stock exchanges.

Financial Strength

Best Buy Co has a cash-to-debt ratio of 0.27, ranking lower than 61.9% of 1097 companies in the Retail - Cyclical industry. However, its overall financial strength score is 7 out of 10, indicating fair financial stability.

At Best Buy, our purpose is to enrich lives through technology. We do that by leveraging our unique combination of tech expertise and human touch to meet our customers' everyday needs, whether they come to us online, visit our stores or invite us into their homes.

Best Buy's likelihood of distress is under 15% at this time. It has tiny risk of undergoing some form of financial crisis in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

The retailer has cited other challenges, too: Shoppers have been choosier about making big purchases while dealing with inflation-driven higher prices of food and more. Plus, they've returned to splitting their dollars between services and goods after pandemic years of little activity.

Customer engagement strategies: The Best Buy marketing strategy employs targeted advertising, digital marketing, and loyalty programs to connect with customers effectively. Strategic partnerships: The company collaborates with brands and engages with communities to strengthen its position as a trusted retailer.