Electronics retailer Best Buy said Thursday it will close 50 big box stores in the U.S. as it changes the focus of its operations to mobile.
The retailer also said it plans to open 100 new mobile locations as it rethinks its U.S. store set-up.
Brian Nagel, a research analyst at Oppenheimer, told CNBC Thursday that Best Buys restructuring plans are fraught with danger, given that they are taking place when the overall market is quite challenging.
Bricks-and-mortar retailer Best Buy has struggled in recent years as it has faced fierce competition from e-commerce giants such as Amazon.com and eBay.
News of the restructuring came as Best Buy reported its quarterly earnings.
The retailer reported a net loss of $1.7 billion, or $4.89 per share, for its fourth quarter ended March 3, 2012, compared to net income of $651 million, or $1.62 per diluted share for the prior-year period.
Best Buy has a couple of issues IMO. One, the constant 'harrassment' by staff. I can't walk 10ft in that place without "Have you been helped?". There's also those annoying DirecTV sales reps who are always in my shorts. Worse, they try to pass off at first like they're Best Buy employees and use the same tired line: "Have you heard about our in-store special today?" Same damn special EVERY day.
Two, their prices suck. I know they have overhead to deal with, but c'mon. $40 for a HDMI cable? $40 for a multi-format flash card reader? Get bent.