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.