Well 18 months ago Best Buy began operating in the UK opening 11 stores in an ambitious plan to enter the European market. The company hoped to expand operations to over 200 locations within a few years and spread out across Europe! However only being open a little more then a year Best Buy has been pounded into oblivion. Best Buy has announced that they lost over 127-million dollars in that short 18 months and that the company could not sustain those kinds of losses another year.
Facing stiff competition from both physical retailers and online retailers Best Buy has announced that they will be closing all eleven stores. Up to 1,100 jobs will be lost and the company is expected to lose even more money as it liquidates its stock and sells its properties. On a side note the company is also distancing itself from European investment by buying out its European Partners shares in Best Buy Mobile.
It would appear Best Buy is never coming back to Europe and is pulling out in shame after being slaughtered. What do you think? If your a European are you happy to hear Best Buy is gone or are you sad, did you want to see Best Buy flourish in Europe? What does this say about Best Buy's global operations we all know they are losing money across the board but remain pretty successful in North America (Canada,US). Does Best Buy have a chance at expanding again in the future into new markets or does this spell the end of all global expansion?
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
