What seemed like a good idea several years ago can change in an instant. That is why investing in seemingly long-term projects is not advisable these days. That’s what Best Buy is learning as they will be officially shutting down all of their dedicated cell phone stores all over the US. Obviously, it is not profitable anymore for the company and they actually cost more to operate and maintain than their regular Best Buy stores where they sell more than just mobile devices.
There are around 250 Best Buy cellphone stores all over the country, but they are barely meeting their targets and aren’t even earning a significant percentage of the company’s revenue. A few years ago, when they started opening these stores in 2011, they planned to have as many as 800 stores because consumers’ buying habits when it comes to cellphones were very different back then. People actually wanted to touch and feel the device first in a physical store before actually buying it.
Fast forward a few years later and consumers now would rather buy their new smartphone from the comfort of their current smartphone. Or if they’re a bit more old school, they’ll buy from the browser on their desktop. And even before a smartphone hits the streets, we know almost everything about it already, so people can decide whether or not to get it without having to play around with it in the stores.
All that means that physical stores that sell only smartphones aren’t needed anymore. The smartphone industry in general is also experiencing saturation as people are holding on to their devices as long as they can. No specific schedule has been given yet as to the official closure of the stores, so we’ll wait for further announcements from Best Buy (not with bated breath).
VIA: Phone Arena
