Carphone Warehouse has announced that it is to close all of its 11 Best Buy stores across the UK.
The first Best Buy Europe store was opened in the UK in April 2010 but only 18 months later, it has been revealed that all stores will close and that the stores have failed to make a profit.
Best Buy's 11 UK outlets are in Liverpool, Derby, Bristol, Nottingham, Rotherham, Dudley, Thurrock, Southampton, and three places in London - Croydon, Hayes and Enfield. There are 1,100 people employed at the Best Buy stores across the UK.
Best Buy Europe was formed back in 2008 when Best Buy paid £1.1 billion for 50 per cent in Carphone Warehouse’s retail division.Best Buy Europe said in a statement: "Since 2008, the consumer electronics marketplace has changed substantially as a result of the economic times, the progress of online retailing and the growth of new products such as smartphones, tablets and apps."
Best Buy Europe launched a UK website 12 months ago and it is unclear whether or not this will remain active once the Best Buy stores close in the UK. The company has said it will be focusing on selling more electronic goods from the 805 Carphone Warehouse stores in the UK ands the 1,649 Phone House shops across continental Europe.
As well as announcing the closure of the UK stores, Best Buy has also announced a decision to buy Carphone Warehouse out of a fast-growing US mobile phone joint venture for £812 million as it attempts to focus its attention on its US operations.
Competition from online retailers and discount chains have forced Best Buy out of the UK market, but it’s never a good sign for customers when the result is less competition.Source: Reuters