Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Best Buy Reports Results, Plans to Close 50 Stores as it Transform Business
Mar 30, 2012
 Printable format
 Email this Article
 Search

Appliances and electronics retail chain Best Buy Co. will close 50 stores in the United States in the coming year as part of a new, multi-year cost-cutting initiative.

Best Buy reported revenue of $50,705 million in the fiscal year ended March 3, 2012, up slightly from $49,747 in the previous fiscal year. Gross profit for the year was $12,573, compared to $12,541 in the previous fiscal year.

For the fiscal year ended March 3, 2012, comparable store sales declined 1.7% compared to a decline of 1.8% for the prior-year period.

Comparable domestic store sales of appliances were up 13.2% in the fourth quarter of the just-ended fiscal year, compared to a rise of 6.5% in the same quarter of the previous year.

International stores saw appliance comparable store sales rise 6.7% in the fourth quarter, compared to an increase of 0.9% in the fourth quarter of the previous year.

Best Buy reported a net loss of $1.7 billion for its fourth quarter ended March 3, 2012, compared to net income of $651 million in the same quarter of the previous fiscal year. The fourth quarter 2012 results include $2.6 billion in charges for acquisitions and UK restructuring, among other things.

"We are taking major actions to improve our operating performance," said Best Buy CEO Brian J. Dunn.

The retail intends to expand its multi-channel strategy, including:
* closing some big box stores
* changing some big box stores to the chain's Connected Store format
* adding Best Buy Mobile stand-alone locations

The retailer also plans significant actions to cut costs: $250 million in fiscal 2013 and a total of $800 million by fiscal 2015. Cuts will include: $300 million from domestic retail stores, $300 million from corporate and support structure, and $200 million from cost of goods sold. Among the steps to be taken:
* 50 U.S. Best Buy big box stores will close in fiscal 2013
* 400 corporate positions will be eliminated

Cuts in the cost of goods sold will be driven by reduction of product transition costs, lower product return and exchange expenses, and supply chain efficiencies.

A new retail store strategy will include a new labor strategy at the same time it decreases overall square footage.

Back to Daily News

 

Daily News

...........................................................

Apr 24, 2014: BSH Annual Revenue Tops EUR 10 Billion for First Time

Apr 24, 2014: New Home Sales Show Sharp March Drop

Apr 24, 2014: Ingersoll Rand HVAC Segment Reports Strong 1Q

Apr 24, 2014: ASHRAE 2014 Annual Conference Announced For Seattle

Apr 23, 2014: Bosch Home Appliances Garners EPA Energy Star Partner of the Year - Sustained Excellence Award

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

March 2014: Market Research - 62nd Annual U.S. Appliance Industry Forecast
February 2014: Appliance Magazine Market Insight: December 2013
January 2014: Market Research - Appliance Historical Statistical Review: 1954-2012
January 2014: Appliance Magazine Market Insight: November 2013




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Pharmalive | Plastics Today | Powder Bulk Solids | Canon Trade Shows