Best Buy closing 50 stores as sales continue to plummet

Best Buy have recorded losses of $1.7 billion over the last quarter, which is down from $651 million profit in the same period 2011. Over the full year they have announced $1.2 billion losses, compared to $1.3 billion profit the year before.

They are cutting 400 job cuts from their corporate headquarters. Their entertainment division was the worst performing division in the last year. Furthermore they have announced that 50 ‘big box' stores will close.

The StarTribune say “All in all, Best Buy hopes to shed $800 million over the next three years, savings the company plans to use to fund its new “connected” store remodels, international expansion and digital services. But even CEO Brian Dunn admits the company's efforts to remake itself are fraught with frustration and uncertainty.”

Analysts suggest that stores such as Best Buy are getting hit hard by online retailer Amazon who are now controlling a huge portion of the market. Amazon CEO Jeff Bezos is able to divert millions of his own money into rescuing Apollo 11 engines from the Atlantic Ocean.

Kitguru says: Best Buy to go the way of Game in the UK?

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