Best Buy announced yesterday that it plans to shut down all of its small mobile phone stores effective May 31. This news should come as no surprise to anyone who passes by the miniature establishments, usually in shopping malls, and it seems like it is long overdue. Reportedly, they account for only 1% of the company's overall revenue and 1% of its total square footage.
The electronics retailer will keep its 52 mobile stores in Canada open, and it will continue to sell phones in its regular locations and on its website. According to internal memo sent to Reuters, over the next three months, Best Buy will redeploy affected employees throughout the rest of the company with internal job help. Those who choose to leave before May 31 will receive a severance package and external job search assistance. The company has thus far declined to mention how many people will be impacted by these store closures.
Best Buy Mobile started over ten years ago, which I found hard to believe initially. It is a real bummer for the employees affected, but at least their employer will be taking steps to help them out. Still, it is never a pleasant situation to find oneself in.