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Best Buy is Shutting Down Its Mobile Stores in the Country

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It's official! Best Buy will be shutting down all of its small mobile stores throughout the country.

The Minneapolis-based retailer earlier sent out an internal memo to its employees letting them know about the decision. Reuters was able to take hold of a copy of the memo and reported it on its website.

According to the report, the retail store intends to close a total of 250 small mobile stores by May 31st. Reportedly, the reason behind this is because these stores only contributed a little over 1 percent to the overall revenue obtained by the company in the past year.

If this sounds worrying for you, there's no reason to panic. Even though Best Buy is shutting down 250 stores in total, the company plans to continue selling mobile phones through its larger stores and online. The smaller stores they intend to close measure around 130 sq meters while the larger stores have a size of 3,716 sq meters.

In addition, the closures will not affect the Best Buy mobile stores based in Canada.

In the internal memo sent out by the company, Best Buy promised they would assist in the redeployment of its employees to the other parts of the business within the next three months. Although this comes as a sincere action for the company, it's unsure how many will be affected by the closure.

It's been 10 years since Best Buy opened its dedicated mobile phone outlet, a time before Apple released its first iPhone ever. This decision isn't new for a company like Best Buy. Just last month, the retailer announced they will no longer be selling physical CDs in their stores due to the growth of sales in digital music.

And with the current competition nowadays, it's easy to understand why Best Buy came to this conclusion. After all, its competitors all have larger stores and have also focused on selling things online.



Source: Reuters

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18 comments:

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  1. Thank you for writing this article. Very informative.
    Happy their not closing the mobile dept in the regular stores.
    Not looking forward to the approaching day having only Amazon & Walmart to choose from.

    ReplyDelete
    Replies
    1. have bought almost all my phones from amazon and walmart, with only one phone from bestbuy. my next phone will be bought on amazon.

      Delete
    2. LiveOrganTransplantsMarch 3, 2018 at 10:55 PM

      Once all the box stores close shop from yins using their show floor to look at products, then going home & order from Amazon, gonna be a short life when the switch gets turned off.

      Delete
  2. Shopping in stores is a really unpleasant experience. I much prefer the convenience of online. The only problem with online shopping is that you have to know the product you're buying.

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  3. Too bad, the service I received in the mobile store was much better than in the big store. The mobile store employees were friendly and knowledgeable, compared to the big store employees that made me want to leave without buying anything. Alas, after the loss of T-Mobile, I found myself visiting the mobile store less frequently. Hopefully the mobile store employees will be kept and used to replace those at the big store.

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    1. I had a very different experience in their Willowbrook Mall store in NJ. Me and my girlfriend walked in to each buy a Zmax 2 for each of us to use with our Straight Talk BYOP program and were treated with such disrespect. They assumed we were resellers and gave us so much attitude and wouldn't sell us the phones. I placed an order online right from the store and selected them as in store pickup out of spite. We got the phones about 45 mins after I placed the order. Good riddance if you ask me.

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    2. That's ridiculous. It makes no difference to them if you buy phones and talk on them, use them as doorstops, or resell them. They get the same $$$ regardless.

      It's really none of their business.

      Delete
  4. In the large city of NY in the area of Union Square there is a 24 hour Best Buy on one corner and a Best Buy mobile across the street. The 24 hour large best buy has a limited stock of phones and they force customers to go across the street to the mobile best buy to make their purchases

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    Replies
    1. " there is a 24 hour Best Buy on one corner and a Best Buy mobile across the street"

      And don't tell me... to go from one to the other, you pass by 6 or 7 Starbucks'.

      Delete
  5. I haven't been to a cell phone store in 10 years. Carriers should get rid of them because they create costly overhead. Sell direct to consumer, old people and less tech-savvy consumers visit stores. I visit stores like BestBuy and Walmart as a showrooms and then purchase on Amazon. T-mobile ought to uncarrier the wireless store. Carriers are throwing away money on commissions.

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    Replies
    1. Makes perfect sense for me, but the carriers are deep into the mindset of VHS rental shops and Saturn repair garages big-time, and are most of them opening new storefronts at an alarming rate.

      Delete
    2. I had a very good experience at an independently-owned T-Mobile store in December. It's pointless to make gross generalizations about cellphone stores.
      The vast majority of buyers rely on them, for a variety of reasons.

      Delete
    3. Going to a carrier store is a good experience to prove that merely from reading a few posts at "Prepaid Phone News" about a carrier division or MVNO, you will likely know more than any given clerk at any given store about said carrier division or MVNO.

      Delete
    4. "I had a very good experience at an independently-owned T-Mobile store in December. It's pointless to make gross generalizations about cellphone stores.
      The vast majority of buyers rely on them, for a variety of reasons."

      My T-Mobile store isn't bad. It took me a few visits to find out that I knew more about T-Mobile than they did. Much better than finding out I know more about Boost than the guy at the Boost store in less than a minute.

      But the carrier store guys do have unique irreplacable knowledge that someone reading Howard or Prepaid doesn't have: how to actually log into and use the carrier account computer system.

      Other than that, is there really much use? I only end up at the T-Mobile store because there are certain account matters they refuse to do online, and they make you go to a store for it.

      It seems odd that in a world where so many retail sectors are being replaced by Amazon and mail order (often due to retail stores having lousy service and overcharging), that something as cutting edge and easy to ship as cellphones have a situation where the storefronts are exploding in number!

      One day the guys making these store expansion plans at carrier corporate will say "What were we thinking?" and all of the carrier stores will be converted to nail salons and Bigby's overnight.

      Delete
    5. You do know that Best Buy price matches... right? So if you do see it on Amazon for cheaper why not just take it with you for the same price at Best Buy instead of waiting 2 or more days?

      Delete
  6. Christine,
    Interesting that you chose to report the store areas in units if sq meters. Most of us don't think metric in the US ;) .

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  7. The point of shopping in stores is haggling and saving money.

    But if the employees are just corporate drones with no wiggle room to push product, it takes away any benefit to human interaction and they become completely redundant.

    You might as well shop online, since you'll be paying full price either way.

    With that being the case, nobody's shedding a tear over the death of rigidly corporatized retail which can't adapt or compete for customers.

    You can either have a thriving brick and mortar enterprise with frequent regulars and plenty of word of mouth advertising.

    Or you can poorly price products relative to the geographic market they're sold in, set those prices in stone, and then fire/relocate the employees who weren't even allowed to compensate for your own blatant mismanagement.

    Most chain stores choose the latter, and now here we are.

    RIP Good Buy Mobile

    ReplyDelete
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