Skip to main content

Best Buy posts great Holiday sales, but is closing all its 250 mobile phone stores

Best Buy confounded analysts expectations with huge Q4 sales.
  • Author:
  • Updated:
    Original:

Best Buy has confounded expectations after huge rises in same-store sales over the Holiday period.

In its 4th Quarter results announced on Thursday, the Richfield-based retailer reveals same-store sales rose a massive 9 percent in the quarter that ended Feb. 3.

Analysts had been expecting a rise of 2.9 percent.

In spite of this, the company is cutting down on its smaller-format, Best Buy Mobile stores – telling employees on Wednesday it'll be closing all of its 250 outlets across the country.

CNBC reports that an internal memo the staff received confirmed the closures, saying that while they had great profit margins in the past during the smartphone boom, the market has since consolidated.

The stores, which average a size of 1,400 square feet and are mostly found in malls, represent just 1 percent of Best Buy sales. They're expected to close by the end of May.

By our count, there are 11 Best Buy Mobile stores in Minnesota, 7 of them in the Twin Cities and those outside located in Rochester, Mankato, St. Cloud and Duluth.

The Star Tribune notes that 85 percent of Best Buy Mobile stores are within 3 miles of a big box Best Buy.

In its Q4 results, Best Buy said mobile phones were among the largest drivers of sales growth – unsurprising given Apple released two new models last fall – with other good performance coming in gaming, appliances, smart home, wearables and home theater.

Next Up

SuspectsWantedMOAShooting

Bloomington PD to provide update on Mall of America shooting investigation

There's unconfirmed reports the suspected gunman and an accomplice have been arrested.

Screen Shot 2022-08-11 at 3.14.27 PM

Motorcyclist found dead behind guardrail 6 hours after crash

The crash happened before sunset Wednesday, but no one called 911.

Screen Shot 2022-08-11 at 2.49.44 PM

Strike vote set for 15,000 Minnesota nurses

If the nurses walk off the job, Minnesota would be home to one of the largest nurses strikes in U.S. history.

DSC_8611

Iowa Gov. asks court to lift injunction on 'heartbeat' abortion ban

A court challenge seeks to revive Iowa's abortion ban.

zipper merge, construction

6 transportation projects in Minnesota get $100M federal funding

The projects extend to areas all across the state.

covid

Minnesota's COVID-19 update for the week ending Tuesday, August 9

The number of cases in the latest reporting period dropped compared to the previous week's update.

Screen Shot 2022-08-11 at 11.27.17 AM

Takeaways from Minneapolis' new gun violence report

The rise in violent crime in Minneapolis is showing signs of plateauing.

bmw-g1a1c50760_1280

Man, woman arrested after shots fired from BMW at 3 motorcyclists

The driver of the BMW led police on a chase, driving the wrong way on state highways.

Screen Shot 2022-08-10 at 2.02.48 PM

Drive Shack Inc. announces upcoming 'Puttery' venue in Minneapolis

The growing business backed by Rory McIlroy is coming to the Twin Cities.

Screen Shot 2022-08-08 at 7.13.33 AM

BCA: Man was 'running towards' deputy with knife before fatal shooting

The Minnesota BCA has identified the four deputies who fired weapons.

Related

Best Buy is closing its Mall of America store

It's come to the end of its 10 year lease.

Best Buy confounds expectations with huge rise in sales

But it's not all good news for the Richfield retail giant.

best buy

Best Buy reports massive rise in online, in-store sales

People turned to Best Buy to buy computers, home theater and appliances during the pandemic.

Best Buy

Best Buy to furlough 51,000 hourly workers as sales plummet

The Richfield retailer has shifted all its stores to curbside pick up only.

best buy

Best Buy reportedly cutting jobs, hours as pandemic hits stores

The Wall Street Journal reported this week that the Minnesota retailer is making cuts.

Best Buy's top gadgets for the holidays: Apple stuff, VR headsets and ... a hair dryer?

There's plenty of Apple tech and virtual reality on Best Buy's list.

Best Buy goes on massive hiring spree ahead of holiday season

The retailer is holding hiring events this week.