Skip to main content
Updated:
Original:

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:

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

D'Angelo Russell

With KAT out, Timberwolves can't upset Nets

D'Angelo Russell stepped up but couldn't overcome Brooklyn's firepower.

Everson Griffen Vikings dot com

Everson Griffen confirms he has bipolar disorder

"I’ve been running from it a long time. I’m not ashamed of it anymore.”

Angela Renee Jones, St. Cloud murder suspect

St. Cloud suspect now charged in two local murder cases

Both murders happened within a day of each other in June.

st anthony 3 crop

Twin Cities police ask for help finding missing 16-year-old

Police say all her family and friends have been contacted, and none of them know where she is.

mpd suspect 12.3.21 - 1 - CROP

MPD releases photos of shooting suspect, asks for public's help

The man is wanted in connection with a fatal shooting that happened Wednesday evening.

redmons popcorn colbert 2

Support grows for Redmon's Popcorn after shop's sudden closure

The county also commented on the situation, saying it hopes to help owner Zack Redmon.

prior lake high school

Prior Lake HS investigating another 'racist' video involving student

The principal said the social media video was reported to them this week.

Screen Shot 2021-12-03 at 3.08.27 PM

Walz: Minnesota has secured 1 million rapid, at-home COVID tests for kids

It comes as the delta variant continues to surge in Minnesota, and the omicron variant might follow.

boundary waters

Forest Service limiting permits to BWCAW due to damage, overcrowding

Visitors have been cutting down trees and have been forced to compete for campsites.

police lights

Lockdown update: Armed man threatened to go to Kimball High School

A high school and elementary school near St. Cloud went into lockdown as a precaution.

chaska sewer

People in Chaska are flushing the wrong crap down the toilet

Water and sewer crews in Chaska have had to clean the same pump four times in the past seven days.

Related

Best Buy is closing its Mall of America store

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

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 confounds expectations with huge rise in sales

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

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.