Best Buy said yesterday that because of poor quarterly sales and a less than promising outlook, it plans to close 50 of its 1,100 stores and lay off 400 employees.
According to the Reuters story, “A Best Buy spokeswoman said it has yet to finalize the locations and timing of the store closings. The company expects the restructuring efforts to cut costs by $800 million in the next three years, including $250 million this year.”
Reuters notes that analysts seem to agree that these moves are not enough - that the company needs to make a lot more cuts to return to profitability.
According to the Reuters story, “A Best Buy spokeswoman said it has yet to finalize the locations and timing of the store closings. The company expects the restructuring efforts to cut costs by $800 million in the next three years, including $250 million this year.”
Reuters notes that analysts seem to agree that these moves are not enough - that the company needs to make a lot more cuts to return to profitability.
- KC's View:
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I hate to say it, but is there anyone out there who would be shocked if Best Buy did not exist in its current brick-and-mortar form in five to ten years?
