Best Buy plans to close 10 to 15 stores in the first half of fiscal year 2025 as part of its efforts to find a balance between its workforce and customer shopping preferences. The decision comes after the company reported $14.65 billion in revenue during its Q4 2024 earnings report, surpassing Wall Street expectations. The affected stores have not been specified, but closures may have already begun in cities such as Denver, Kansas City, and Apple Valley. CEO Corie Barry cited various factors for the closures, including changing customer habits and the need to reallocate space for new tech products.
Best Buy, the top U.S. electronics retailer, has forecasted a larger decline in annual comparable sales and cited "difficult to predict" consumer demand ahead of the holiday shopping season. The company's shares fell 5% as it reported an eighth consecutive quarterly fall in comparable sales. Factors such as elevated interest rates, a shift to spending on services, and the resumption of student loan repayments have contributed to weakened appetite for electronics and home-office products. Best Buy's third-quarter revenue dropped 8.2% to $9 billion, with demand falling across various product categories. The company has adjusted its annual sales forecast to a decline of 6.0% to 7.5%.
