Best Buy to Close Its Small-Format Mobile Phone Stores

This Monday, May 22, 2017, file photo shows a Best Buy sign at a store in Hialeah, Fla. Best Buy said it will no longer sell software made by the Russian company Kaspersky Labs. Photo: AP/Alan Diaz, File
This Monday, May 22, 2017, file photo shows a Best Buy sign at a store in Hialeah, Fla. Best Buy said it will no longer sell software made by the Russian company Kaspersky Labs.

February 28, 2018 06:38 PM

Best Buy is shuttering all 250 of its small-format mobile phone stores in the U.S., saying the locations have become less profitable.

A memo from the CEO to employees says the stores will close by the end of May and every effort will be made to retain the workers.

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The nation's largest consumer electronics chain launched the stores more than a decade ago, before Apple's iPhone was launched. The mobile phone business was growing quickly, with high profit margins.

But it said the business has matured and running the mobile stand-alones cost more than its larger stores, and that 85 percent of the stand-alones are within 3 miles of a big box store.

Best Buy says the stand-alone stores accounts for just over 1 percent of the company's total revenue.

 

Credits

Associated Press

(Copyright 2018 by The Associated Press. All Rights Reserved.)

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