Best Buy has decided to shut down all 250 mobile phone stores located in the US as a notice from the company CEO has been given to the employees this past Wednesday. Best Buy mobile stores were opened back in 2006.
As the competition has risen in the mobile space, profits for third-party retailers have been affected. At one time Best Buy has 400 stores in the US which declined witht he time and among one of the few reasons for this closing is that the mobile phone business has matured, margins have compressed and the cost of operations has become higher.
There are currently over 1,000 Best Buy stores operating. Many employees of mobile locations will have the opportunity to transfer to nearby stores, but those let go will be receiving severance pay.