Best Buy to close 50 big box stores, stock falls 8 percent
Friday, March 30, 2012
Trouble may be on the horizon for Best Buy as its stock took a nose dive on March 29, following the announcement that it will close 50 big box stores in the United States by 2013.
The company's stock price dropped 8 percent despite the retailer posting a better-than-expected earnings report; however, it failed to overcome the news about closing down some of its key locations across the country.
"As part of our multi-channel strategy, we intend to strengthen our portfolio of store formats and footprints - closing some big box stores, modifying others to our enhanced Connected Store format, and adding Best Buy Mobile stand-alone locations - all to provide a better shopping environment for our customers across multiple channels while increasing points of presence, and to improve performance and profitability," said Brian Dunn, CEO.
Best Buy joined other companies on the stocks to watch list offered by The Street. Other stocks that may fluctuate soon depending on their situation include Research in Motion, Red Hat, Red Lion Hotels and Illumina.
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