Minneapolis - Best Buy will
open around 150 Best Buy Mobile stand-alone-stores in the U.S. in fiscal 2012,
as well as open six to eight large-format stores and "improve efficiencies in
its U.S. supply-chain operations."
These plans, along with
other international strategies, were made as part of an effort "intended to
enhance growth in key strategic businesses and improve the financial
performance of its international segment," the retailer said in a statement.
While Best Buy said it
will exit the Turkey market, 40 to 50 new store openings are planned in its
Five Star business in China, and 18 Best Buy-branded large-format stores are intended
to open in Canada, United Kingdom and Mexico.
Nine Best Buy-branded
stores will be closed in China.
"We're pleased to continue our investments in
the Best Buy Mobile and Five Star business models, which are profitable and
have significant growth opportunities," said Brian Dunn, CEO of Best Buy. "The
actions we are taking are consistent with our strategy of driving businesses
that have earned the right to additional capital while curtailing activities
that we believe will not meet our return on investment thresholds."
efficiencies, the retailers said it "plans to restructure certain end-to-end
supply-chain processes in the U.S., which it believes will improve efficiency,
enhance customer service and reduce costs. This restructuring will result in
charges related to asset impairments on real estate, equipment and inventory as
well as costs incurred to deliver labor efficiencies. Separately, the company
noted that it will take an impairment related to certain intangible trade-name
assets as a part of its restructuring activities."
charges will reportedly include asset impairments, settlement of lease
obligations, facility closure costs, severance costs and inventory adjustments.
Best Buy declined to
elaborate on its plans to streamline its supply-chain operations in the U.S.
Net sales dipped 1.6 percent for the
retailer in December 2010, to $8.4 billion, with soft TV demand and a sharp dip
in entertainment software sell-through cited.
U.S. revenue fell 3.2
percent to $6.5 billion, while comp-store sales dropped 5 percent.