Best Buy, the nation’s leading electronics retail chain, plans to close all 257 remaining Best Buy Mobile stand-alone stores in the United States by May 31, 2018. Most were located in shopping malls.
The company said the decision is the result of changing economics in the mobile industry since Best Buy began opening these stores in 2006. Best Buy will continue selling phones through its main stores and online.
Best Buy expects a charge of $55 to $65 million for the closing, primarily due to termination of store leases.
Best Buy reported strong revenues of $15.3 billion, up 9%, in its fiscal fourth quarter ending February 3, 2018. Net income was $364 million.
“We are excited to report strong results for the fourth quarter and the year,” said Hubert Joly, Best Buy chairman and CEO. “We are especially proud of our 9.0% comparable sales growth in the quarter, which brings our annual comparable sales growth to 5.6% for the year. Customers are responding very positively to our Best Buy 2020 strategy, and I want to enthusiastically thank all our associates for their great work in delivering these results. The level of energy and dedication to serving customers that I see across the company is truly inspiring.”