Kent, Wash. — Magnolia Hi-Fi will exit the car stereo business, effective Feb. 27, with inventory expected to be liquidated by the end of May.
In a letter to vendors, the company said, “Unfortunately, despite the best efforts of our vendor, merchant and sales teams, our company has become unable to sustain the time, money and energy required to be successful in this category.” The letter was signed by Magnolia merchandising VP Al Conrad.
Magnolia said that the closure of the mobile electronics department “gives our stores, as well as our regional and corporate support teams, an opportunity to focus in on areas of our business that hold greater promise for Magnolia.”
The car stereo market saw double-digit declines in core products, including in-dash CD players, amplifiers and speakers last year, according to The NPD Group.
Magnolia Hi-Fi is a wholly owned subsidiary of Best Buy that operates 20 freestanding stores in Washington, Oregon and California.