SPARKS — Best Buy Corporation — which has two stores in Sparks, one at the Outlets at Legends and one at the Gallaria in Spanish Springs, one store in Reno and one in Carson Valley — announced Thursday it will close 50 big-box stores nationwide as part of a company-wide action to improve business performance.
“A list of the stores to be closed was not immediately available,” Best Buy said Thursday. “We will announce details about specific store locations and timing for closings once they are finalized.”
Best Buy has 1,450 locations nationwide and 2,900 globally. As part of a corporate initiative, the plan is to close some of its larger stores to concentrate on smaller Best Buy mobile outlets as part of two emerging trends, according to an investors report the company released Thursday.
“Sales of TVs, digital camera and video game consoles have weakened, while sales of tablet computers, smartphones and e-readers have increased,” said Brian J. Dunn, DEO of Best Buy in the release. “And with the rise of competition from Internet rivals like amazon.com, shoppers aren’t flocking to big-box stores like they used to.”
Best Buy at the Outlets at Legends opened at the end of February 2009. The 30,000-square-feet of retail space is the same size as the store in Spanish Springs and both are smaller than the store on South Virginia Street in Reno. The store was included energy-efficient hanging skylights and a better water system in restrooms and was a newer concept for Best Buy at the time.
Best Buy was born of a partnership that began with a small electronics store called Sound of Music in 1966. The company expanded to nine stores in Minnesota and received its new corporate name from the board of directors as Best Buy Co., Inc. By 1993, it became the nation’s second largest electronics retailer.
Thursday’s investor release reported a net loss for the company of $1.7 billion, or $4.89 per share for its fourth quarter, which ended March 3, compared to a net income of $651 million, or $1.62 per diluted share for the prior-year period. The fiscal fourth quarter 2012 results include $2.6 billion of charges primarily related to the actions announced on Nov. 7, which consisted of the purchase of Carphone Warehouse Group plc’s share of the Best Buy Mobile profit share agreement and related costs.
Actions to improve business performance listed for the company to improve profits include an $800 million in planned cost reductions by fiscal 2015; $250 million in fiscal 2013, reductions to fund investments in enhanced customer experience and growth initiatives which will include launching of a Connected Store full market test in the Twin Cities and San Antonio in fiscal 2013; the closure of 50 big-box stores in fiscal 2013 to reduce the company’s big-box square footage by 20 percent; the opening of 100 Best Buy Mobile small format stand-alone stores in fiscal 2013; and plans to grow the company’s domestic segment of its online revenue by 15 percent in fiscal 2013.
“In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance,” Dunn said.