Best Buy sells everything from household appliances to laptops to home automation security systems—much of which is available for a fraction of their competitors' pricing. But as much as shoppers love Best Buy and its kitschy blue and yellow exterior, its future in retail remains to be seen. In 2023, Best Buy closed dozens of its large format stores and revealed plans to open more outlets instead. And it appears the rampant closures aren’t over just yet.
RELATED: These Are All the Walmart Locations Closing in 2024.
In a recent earnings call to discuss the last financial quarter of 2024 (which ends this month, even though it is only the beginning of the calendar year), Best Buy announced that 24 stores have ceased operation over the past fiscal year.
This past month alone, 10 stores have closed in Northport, New York; Apple Valley, Minnesota; Murray, Utah; Kildeer, Illinois; Wooster, Ohio; Southglenn, Colorado; Margate, Florida; Stafford, Virginia; Tiffany Springs, Missouri; and Vauxhall, New Jersey, according to Daily Mail.
But the bigger news is that the company plans to shut down up to 15 additional locations in the 2025 fiscal year (which ends in March 2025).
“As our ongoing practice, we will continue to close existing traditional stores during our rigorous review of stores as their leases come up for renewal. In fiscal '24, we closed 24 stores. And in fiscal '25, we expect to close 10 to 15 stores,” said Best Buy’s chief financial officer Matt Bilunas, per a call transcript.
To help drive the company’s “forward-looking store strategy,” chief executive officer Corie Barry said in the call, "First, we will open small locations in a couple outstate markets where we have no prior physical presence... Second, we will test our ability to close a large-format store and open a small-format store nearby, thereby maximizing physical store retention through convenience."
Additionally, Best Buy intends to replace a selection of its large retail stores with outlets. Best Buy outlets offer more budget-friendly pricing because a majority of the inventory is open-box items (customer-returned products).
Previously, Best Buy showed interest in expanding its line of experiential store models. As the Best Buy website explains, these stores allow customers to test out electric transportation like e-bikes, attend demos, and shop a larger selection of outdoor living and health and fitness items.
Barry spoke highly of the more “premium” storefronts in a 2023 earnings call last spring: "This format has more premium experiences in a 35,000-square-foot selling area, showcasing the very best of Best Buy." However, the company hasn’t announced plans to expand these stores in the 2025 fiscal year.
"Stepping back, we expect the evolution of our store portfolio and operating model to drive sales lift and efficiencies over time," Barry told investors. "Most importantly, these changes are necessary to relieve the pressures of a changing world, a world in which customers are in control and increasingly more digital and the cost to operate physical stores such as rent and labor are not likely going to come down."
As USA Today noted, Best Buy has not announced where the forthcoming closures will take place.
