Saturday, April 14, 2012

Best Buy in Monroe set to close

Best Buy, struggling with mounting losses and the unexpected resignation of its CEO, said Saturday that it will permanently close its store on Highway 74 in Monroe next month.

The complete list of stores Best Buy plans to close was released early Saturday. The only other store in North Carolina targeted for shut down is in Rocky Mount.

The company said employees at the stores have been notified, and Best Buy is "working to help these employees find other positions." They'll get a severance package if they decide not to move to a new location, Best Buy said.

The Monroe store's final sale will begin immediately, on Sunday, April 15. Sales of up to 20 percent off select items will be offered to start. The store will permanently close on May 12. There are 12 other Best Buy stores and four smaller standalone Best Buy mobile locations in the Charlotte area.

Some of the hardest-hit markets are around Minneapolis, which is losing six stores, Chicago, also losing six, and California, which is losing seven.

Best Buy posted a $1.7 billion loss in its most recent quarter, after holiday season that missed analysts' revenue forecasts. Sales at stores open a year or more, a key measure of a retailer's health, also continued to slide. The retailer is closing 50 of its biggest big-box stores to focus on the smaller Best Buy Mobile format.

And in another blow to the company, Best Buy's CEO Brian Dunn - who worked his way up from sales associate to helm the company - abruptly quit this week. The company initially said, "There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures. There was mutual agreement that it was time for new leadership to address the challenges that face the company." 

However, since then, the Wall Street Journal has reported that Dunn resigned in the midst of an investigation into whether he misused company resources to carry on an alleged relationship with a 29-year-old female employee.

Best Buy has been grappling with ever-increasing competition from online retailers such as Amazon.com and the electronic boutique juggernaut that Apple created with its retail stores. Those market forces already claimed big box competitor Circuit City.


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13 comments:

Anonymous said...

I urge everyone to do their homework at Amazon.com and Newegg.com before buying anything at a Best Buy closeout sale - the liquidation company will typically jack prices up before the 'sale.' And you can bet, the most popular items and boxed new models have already been shipped to other Best Buys.

Anonymous said...

Was just a matter of time. I like BB, but I'm surprised they made it this long.

DistrictSix said...

One can bet the Liquidation company will provide better customer service than received at Best Buy in the past.

Anonymous said...

Amazon. Really?

I just bought a television. I priced it at Amazon, Best Buy, BJs, and Wal-Mart.

The manufacturer's site said the suggested list was $699. Best Buy had it for $679, BJs had it for $649, Wal-Mart had it for $598, and Amazon had it for $770 plus shipping ($70 ABOVE MSRP.

Exact same make and model.

Anonymous said...

I too am surprised that Best Buy has made it this long. I used to be a best buy shopper but haven't been in one of their stores in 5 years. I now shop Wal Mart electronics and newegg.com and am pleased with the quality of their products and the service.

Anonymous said...

They should close the Metropolitan store also. Nothing is ever in stock and the customer service sucks.

Shelly said...

totally agree about jacking up prices...please do not think you will get a deal...they are notorious for over pricing then offering sales...may be part of the problem

sanitizer said...

Best Buy sale? Hahaha They advertise stuff , only have 3 in the store and the employees buy it before the doors open and resell it on ebay to augment the pittance BB pays them. Retail stores are a failed model.

Anonymous said...

Monroe, NC will have less places to pick from for major appliances since Queen City TV and Appliance closed their Monroe store last year and now Best Buy Monroe throwing in the towel. I would never buy an appliance from Sears ever again.
Looks like Mom and Pops businesses will come back maybe?

SteelerGrrl said...

Agree with Anon 5:08; IMO Best Buy was one of the better big box stores 5-10 years ago & I made some major purchases there back in the day.

DH and I went in last year looking for a new fridge and gas range, and it was a completely different experience. Literally the only people in the store who showed any interest in us were the security guards, and that was limited to making sure we didn't steal anything during our brief visit.

Since Best Buy apparently no longer wanted our business, we took it elsewhere. Haven't been back since. After the Christmas debacle, it was pretty much a matter of time.

Anonymous said...

B&H and Adorama in NY. Crutchfield in Va. Amazon as a last resort. Six day shipping from Chattanooga is pitiful. Two days from NY from B&H like clockwork. B&M's lack of help and selection are unfortunate and real.















&H

Anonymous said...

Best Buy has had many issues including customer service but most recently under scrutiny for pricing activities related to electronics and horizontal relationships with manufacturers that do not allow discounts for their products at retail or they control the level and amount of discount. Example of this would be Dre Beats, Bose, Sony, etc. Best Buy has high overhead and cannot compete if every retailer has the same price and some offer free shipping and better warranty and return programs. I am happy to see them go and let the online retailers fight it out with the manufacturers for best price and then the consumer wins! Right now, Best Buy wins when we purchase retail and they control the returns and the add on's like protection and geek squad.

Start A Dollar Store said...

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