Best Buy said in March that it would close all 250 of its small-format locations by the end of May.
Best Buy CEO Hubert Joly told Business Insider in a recent interview, “We had opened them about 12 years ago, at a time when the penetration of smartphones was very low, so this was a great growth opportunity. The margins in smartphones were very good. Fast forward to 2018, smartphone penetration is a very mature industry.”
Business Insider said that the company indicated that it would instead invest in its big-box stores, where the company is able to provide “a better experience because there’s more space.”
“In business, you have to constantly optimize what you do,” Joly told the publication. “If you don’t optimize, you’re stuck.”
“Our VCR department, for example, is not doing so well anymore,” he joked.
Video Credit: Wochit Business / Videoelephant