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Entries in Store Closings (5)

Sunday
Apr152012

Best Buy Releases Store Locations Closure List

Karen Bleier/AFP/Getty Images)(NEW YORK) -- Best Buy on Saturday announced the locations of the remaining 42 stores slated for closure as part of the electronic retailer’s plan to cut costs.

Last month, the company announced plans to shut down 50 stores following a $1.7 billion loss for its fourth quarter that ended March 3.

To date, the company has shut down two locations — a store in Kansas City, Mo., and another in Scottsdale, Ariz., in February.

Later this year, five stores in the Twin Cities area and one in San Antonio will also shut their doors.

To see a complete list of store locations closing, click here.

“This was not an easy decision to make. We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for the contributions they have made to our business,” company officials said in a news release.

The company said it anticipates the majority of the stores will close permanently by May 12 and by the summer.

However, Best Buy Mobile stores will continue to remain open.

Along with the store closures, Best Buy planned to cut about 400 jobs in its corporate and support areas as part of the company’s goal to achieve $800 million in cost reductions by fiscal year 2015.

With the closures, Best Buy says it plans on focusing on increasing “points of presence, while decreasing overall square footage, for increased flexibility — including key store remodels with a new Connected Store format, while continuing to build out the successful Best Buy Mobile small format stores throughout the U.S.”

The announcement comes after Best Buy CEO Brian Dunn resigned this week amid a personal conduct probe.

Copyright 2012 ABC News Radio

Thursday
Mar292012

Best Buy to Close 50 Stores, Cut 400 Positions

KAREN BLEIER/AFP/Getty Images(MINNEAPOLIS) -- These are the worst of times for Best Buy.

Facing losses and stiff competition from retailers like Amazon, Wal-Mart and even Apple, Best Buy announced today it plans to close 50 box stores over the next year as it tries to cut costs.

The move comes as the retailer reported a $1.7 billion loss for its fourth quarter ended March 3.

Not only is Best Buy losing market share, its large consumer electronics stores are filled with stuff that many consumers no longer want to buy. Sales of DVDs, games, CDs and software have all been challenged by the rise of online commerce.

Along with the store closures, Best Buy also plans to eliminate about 400 jobs in its corporate and support areas. The goal, the company said in a statement, is to achieve $800 million in cost reductions by its fiscal year 2015.

“In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance,” Best Buy CEO Brian J. Dunn said in a statement.

“These changes will also help lower our overall cost structure. We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices — which will help drive revenue,” Dunn added.

As part of the company’s new strategy, Best Buy will remodel some of its big box stores with what it calls a “Connected Store” format. These stores will “focus on connections, services and multi-channel experience through a total transformation of both the store and the operating environment.”

The company also expects to go small, expanding its Buy Mobile stores by opening another 100 by next year.

Copyright 2012 ABC News Radio

Tuesday
Dec272011

Sears to Close 100+ Stores as Sales Fall

Tom Pennington/Getty Images(HOFFMAN ESTATES, Ill.) -- Sears Holdings Corp. said it will close 100 to 120 of its full-line Sears and Kmart stores as it struggles to attract shoppers.  The company said Tuesday its sales for the fourth quarter so far are off 2.6 percent compared with last year.

In a statement, Chief Executive Officer Lou D’Ambrosio said, "Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model. These actions will better enable us to focus our investments on serving our customers and members through integrated retail -- at the store, online and in the home."

The company will take a fourth quarter tax-related non-cash charge of $1.6 billion to $1.8 billion.

According to the Hoffman Estates, Ill.-based company, fourth quarter sales at its Kmart stores fell 4.4 percent and Sears domestic stores fell 6 percent for a total decline among all its stores of 5.2 percent.

“Kmart’s quarter-to-date comparable store sales decline reflects decreases in the consumer electronics and apparel categories and lower layaway sales.  Sears Domestic’s quarter-to-date sales decline was primarily driven by the consumer electronics and home appliance categories, with more than half of the decline in Sears Domestic occurring in consumer electronics. Sears apparel sales were flat and Lands’ End in Sears stores was up mid-single digits,” the company said.

Sears said its earnings excluding certain items would be $933 million in the fourth quarter -- half its level of last year.

Copyright 2011 ABC News Radio

Friday
Oct142011

The Gap to Close 200 Stores in North America

Justin Sullivan/Getty Images(SAN FRANCISCO) -- Faced with declining sales, Gap. Inc announced Thursday that it would shutter about 20 percent of its clothing stores in North America by the end of 2013.

Currently, there are nearly 900 stores and within two years, only 700 Gaps will stay open.

The problem is that Gap's mid-priced clothes are being squeezed out by customers looking for items either on the high or low end of the scale.  Old Navy and Banana Republic, which are also owned by Gap Inc., are also seeing sales drop off but not as drastically.

Meanwhile, the Gap is looking East for some answers.  It plans to triple its stores in China from 15 to 45.

Copyright 2011 ABC News Radio

Friday
Feb182011

Borders Liquidation Sales Begin at 200 Stores Saturday

Photo Courtesy - Tom Pennington/Getty Images(CHICAGO) -- Borders, the second-largest bookseller in the U.S., will begin holding sales across the country on Feb. 19 as 200 of its stores prepare to close down in connection to the company's bankruptcy filing.

The store closing sales will take place in 35 states and Puerto Rico.  According to Borders, over $350 million worth of inventory, including books, magazines, music and movie media, calendars and posters, will be liquidated.  Shoppers can expect to see discounts ranging from 20 percent to 40 percent.

Borders announced Wednesday it had filed a petition for relief under Chapter 11 of the Bankruptcy Code.  In its petition, the bookstore chain listed $1.29 billion in debt and $1.28 billion in assets.

Copyright 2011 ABC News Radio







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