In 2006, Best Buy began opening small "Best Buy Mobile" stores across the country, typically in shopping malls. A year later, the iPhone made its debut.
These stores specialized in the sale and service of cell phones and other small devices. At one time, according to the Minneapolis Star Tribune, Best Buy operated more than 400 of these stores.
But now the Richfield, Minnesota-based retailer is closing all 257 of its remaining mobile stores. A memo was sent to employees Feb. 28, and the company notified the federal Securities and Exchange Commission.
The company will close all of the mobile stores by May 31, including these locations in the Pacific Northwest:
- Best Buy Mobile - 220001 84th Ave S #103 Kent, WA 98032
- Best Buy Mobile - 841 Southcenter Mall, Spc 532, Tukwila, WA 98188
The company's CEO Hubert Joly said on an earnings call that the stores were closing due to "changing economics in the mobile industry," Dayton Daily News reported.
Best Buy to close nearly 260 mobile stores, including local store
— Dayton Daily News (@daytondailynews) March 5, 2018
https://t.co/1LZ8wAB3M3 pic.twitter.com/dohZ5ioor0
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"Back then the mobile phone business was in a period of rapid growth and margins were high," Joly said, according to the Dayton Daily News. "Fast forward to 2018 and the mobile phone business has matured, margins have compressed and the cost of operations in our stand-alone stores is higher than our big-box stores."
All of the company’s “Best Buy Mobile” stores are in shopping malls and measure about 1,400 square feet. A regular Best Buy store covers about 40,000 square feet.
According to the Star Tribune, employees who work at the mobile stores will be offered severance. Joly also said the company will work to transfer as many employees as possible to nearby stores or to other roles.
Cox Media Group