If you’re aiming to save more money on electronics, video games, and technology, Best Buy can be a valuable destination. However, shoppers in certain areas might need help finding a nearby store due to the recent closures announced by Best Buy CEO Corie Barry. So, you might ask, “Is Best Buy going out of business? The answer is NO!
In March last year, Corie disclosed the closure of 17 Best Buy stores nationwide. She emphasized that such closures are not uncommon, as the company routinely reviews leases and typically shuts down 15 to 20 traditional large-format stores annually. So, which Best Buy stores closed in 2023?
Corie also highlighted a shifting trend in Best Buy’s sales, with more customers opting for online purchases rather than in-store shopping. Notably, she mentioned that 33% of the company’s revenue for fiscal year 2023 was generated through online sales, corresponding to 19% in FY 2020.
Best Buy Stores Closed in 2023: Key Takeaways
- Store Closures in 2023: Best Buy strategically closed 17 stores in March 2023 as part of routine annual reviews. CEO Corie Barry emphasized the closure targeted underperforming locations, maintaining a consistent practice of shutting down 15 to 20 large-format stores yearly after thorough lease assessments.
- Affected Locations: The closures impacted various regions, including Hixson in Tennessee, Farragut, St. Joseph in Missouri, and multiple locations in Minnesota, California, Texas, and Illinois. Over the past five years, about 100 Best Buy areas have closed, marking a 10% reduction in physical locations.
- 2024 Outlook: In response to the evolving retail landscape, Best Buy plans to close 20 to 30 more locations in 2024. The decision reflects the company’s proactive approach to adapt to changing consumer preferences, especially the increasing shift towards online purchases.
- Strategic Shift and Future Plans: Best Buy remains committed to providing exceptional service and innovative products despite closures. CFO Matt Bilunas expresses confidence in the company’s financial position, highlighting a $700 million contribution to fourth-quarter revenue for FY 2024. CEO Corie Barry outlines plans for store closures, Experience store remodels, and the opening of outlet stores in fiscal 2024. The company’s $200 million investment in traditional store formats, routine updates, and maintenance underscores its commitment to adapting to market dynamics.
Best Buy Closing Multiple Stores In These Locations
During a March 1st earnings call last year, Best Buy director and CEO Corie Sue Barry revealed that Best Buy would close stores in different regions. This decisive action was to streamline its operations by closing 17 stores last year in March. These closures were meticulously identified through their rigorous lease review process, ensuring that only underperforming locations were targeted for closure.
Reports have confirmed the closure of several stores in various regions, such as Hixson in Tennessee and Farragut, St. Joseph in Missouri, and multiple locations in Minnesota, including Blaine and Shakopee. Additionally, stores in California, Temecula, Pflugerville, Algonquin, Texas, and Illinois were among those slated for closure on the same day.
During the Q3 earnings call, the number of total stores that were shuttered came to 24. Best Buy made the choice, adding to a development that has seen around 100 Best Buy stores close in the past five years. This stamps a considerably lessening in-store check for the famous gadgets retailer, relating to a 10% depreciation in physical areas during that time span.
In recent news, Best Buy disclosed the closure of its Apple Valley store, which is preparing to shut its doors at the start of March this year. The same decision not to renew the building’s lease led to this closure. The Apple Valley location employs approximately twenty full-time workers and some part-time staff. The company intends to retain as many employees as possible and actively assists them in finding positions at nearby Best Buy stores. Mind you, this will not be the sole closure in 2024.
The 2024 Outlook Of Best Buy
As of 2024, Best Buy’s closing plans for 20 to 30 locations, with multiple stores already scheduled to close their doors on March 2nd. The impacted stores are Virginia, Stafford, Minnesota, Kansas City, Apple Valley, and Missouri.
Chief Executive Officer Corie Barry’s notice last November forewarning of impending closures. During an earnings discussion, Barry said the company foresaw closing approximately 15-20 stores each year shortly. The continuous shift towards online purchases and changing consumer tastes have undoubtedly influenced Best Buy’s strategic thought process regarding store closures.
While the retailer recognizes the need to optimize its physical footprint, it will continue serving customers in the most convenient way as the retail industry transforms. The specific stores being closed have likely been underperforming for some time. Best Buy aims to devote more resources to locations demonstrating the most significant promise to attract and assist in-store and digital clients. This intermediate approach aims to clarify while maintaining relevance in an evolving marketplace. In spite of these closures, Best Buy stays focused on giving extraordinary administration and creative items through its staying shops and online channels.
On the other hand, Best Buy’s CFO, Matt Bilunas, expressed confidence in its overall inventory position and its health throughout FY 2023. He mentioned the impact of the 53-week year for sales reporting, which is expected to contribute approximately $700 million to the fourth-quarter revenue of FY 2024.
Looking ahead to fiscal 2024, CEO Corie Barry outlined the company’s plans, which include the closure of 20 to 30 large-format stores, 8 Experience store remodels, and the opening of around ten additional outlet stores. Best Buy’s investments in traditional store formats, routine updates, and maintenance are estimated to total $200 million in capital expenditures.
Over the past three years, the company has seen a 20% reduction in headcount, amounting to about 25,000 employees. Best Buy attributes this decline to shifts in consumer buying behavior and a growing preference for greater work flexibility.
Moreover, Recent reports show Best Buy’s push into Canada shows they’re hungry for growth and fresh ideas. They plan to open 165 Express stores in Canada. Which basically covers the stores they are currently closing in the US. Due to their deal with Bell Canada, Rebranding The Source’s stores helps Best Buy use what’s already there. This strengthens their place in the market. More than just growing their Canadian presence, they’re escalating their retail rivalry. Market changes don’t scare them; proof of this is their ability to shift and grow, a sign of true leadership in electronics retail.
Here Are Some of the Main Stores That Closed In 2023
1. Algonquin, Illinois
On March 4, 2023, the Best Buy store in Algonquin, Illinois, was shut down. Since 2007, this large store spread across 31,000 square feet on 1561 S Randall Rd. It was a well-known spot, but Best Buy chose not to renew its lease for this place.
2. Pflugerville, Texas
On March 4 last year, the Best Buy electronics and appliance store at Pflugerville’s Stone Hill Town Center permanently closed.
Best Buy acknowledged the closure and gave reasons for it, including poor sales volume and the existence of other nearby stores in North Austin and Round Rock that will both stay open. The closest retail locations are in Round Rock and Georgetown, off Interstate 35.
3. Farragut, Tennesse
After operating in Farragut for several years, Best Buy, located on Parkside Drive in the Turkey Creek shopping area, was scheduled to cease operations on March 4, 2023. A notice posted on the store’s door officially confirmed the closure.
For those in West Knoxville, an alternative Best Buy remains at 8925 Town and Country Cir on Cedar Bluff.
4. Hixson, Tennessee
Hixson is another Best Buy location in Tennessee that has closed its doors. In an official statement, the company expressed that choosing to shut a store is always challenging. They extended gratitude to their loyal customers in the Hixson area who have supported them throughout the years.
The 20,000 square ft. store in Hixson has a sign announcing its closure and telling shoppers to go to the Overlook at Hamilton Place on BestBuy.com or Gunbarrel Road for shopping. Notably, Best Buy has been serving customers in East Brainerd since 1993, shortly after the opening of the nearby Hamilton Place mall in 1987.
5. St. Joseph, Missouri
Best Buy closed its store in St. Joseph, near the Kansas and Missouri border, in March last year. In response, Best Buy issued a statement, reassuring customers that they can still access the retailer’s offerings through BestBuy.com or the Best Buy app.
According to Olivia Bruce, Best Buy’s External Communication Specialist, these decisions, while challenging, are part of the company’s routine and continuous store evaluation process as leases approach renewal.
6. Shakopee, Minnesota
Similarly, in March, Best Buy closed its Shakopee location. Based in Richfield, the electronics retailer explained that its store in Eden Prairie, already a regular destination for Shakopee shoppers, provides enhanced in-store experiences and a wider array of products, making it a more premium shopping destination.
7. Blaine, Minnesota
It was closed last year, but not permanently but temporarily, to get it remodeled into a “Best Buy Outlet.”
Starting February 1, 2023, Best Buy, located in Blaine, Minnesota, is temporarily closed and is slated to reopen as an outlet store in the summer. This new outlet store will specialize in selling open-box and discounted merchandise.
8. Temecula, California
Best Buy’s branch at 32937 Temecula Parkway, Temecula, California, shut down in March 2023. Of the several reasons for this decision include low sales and lease contract renewal.
9. Stanislaus County,
Best Buy surprised Stanislaus County folks last year by deciding to shut its Riverbank Crossroads center just before the holidays. This shop has been in the community for 13 years, a familiar sight in its large 30,000-square-foot space since 2008. Olivia Bruce, the company’s representative, clarified that Best Buy isn’t extending the rental contract of this branch, leading to questions about future electronic buys in the community.
As Best Buy’s second outlet in the county, its closure signifies the end of an era. Bruce added that the closure is routine when rental agreements end and made it clear there are no fresh openings planned nearby.
10. Broadway NoHo, New York
Best Buy Broadway NoHo in New York closed its doors on October 28, 2023. Although there is not many details that you can find on the Internet. All you will get on its website is “It’s not goodbye, it’s see you later! Stay connected with us, explore nearby locations or shop with an expert online.”
About Best Buy
Best Buy is a retail company specializing in technology products in the United States and Canada. The company is divided into two segments: International and Domestic. Best Buy stores offer a range of products, including mobile phones, computing devices, networking products, smartwatches, and consumer electronics like health and fitness items, portable audio equipment, home theater systems, smart home products, and portable speakers.
Additionally, Best Buy provides appliances such as laundry machines, dishwashers, refrigerators, ovens, coffee makers, vacuums, and blenders. The stores feature entertainment products like peripherals, drones, music, movies, toys, gaming software, gaming hardware, virtual reality, and other software products. Best Buy also offers various other products, including food, beverages, baby products, outdoor living items, luggage, and sporting goods.
The company distributes its products through both online platforms and physical stores. Initially known as Sound of Music, Best Buy was established in 1966 and is headquartered in Minnesota.
Conclusion
To all those asking, “Is Best Buy going out of business?,” the answer is plain no. Best Buy’s strategic decision to close stores in 2023 aligns with a broader industry shift towards online retail and changing consumer preferences. CEO Corie Barry’s transparent communication about the closures reflects a commitment to optimizing the company’s physical footprint while adapting to evolving market dynamics.
The forthcoming closure of 20 to 30 large-format stores in 2024 underscores Best Buy’s dedication to focusing resources on locations with the most promising prospects. Despite a 20% reduction in headcount over the past three years, the company remains resilient, investing in store remodels, outlet openings, and a significant push into the Canadian market. Best Buy’s ability to navigate market changes and sustain growth showcases its leadership in the electronics retail sector.
