Best Buy (ticker symbol: BBY) said that stores on the closing list will make severance packages available to employees if they cannot find another role in the company. With the nixing of 50 stores, questions arise about the fate of employees and a transition time table.
Are Best Buy Jobs Safe after Store Closings?
Just when Burger King is hard at work revamping its menu, another industry giant joins Sears in posting revenue losses. While BK is "cosmetically" dealing with sagging sales, Best Buy is making radical changes to its growth model. Yikes!
The electronics giant recently announced a "deliberate" decision to shutter several stores within the company as part of its "evolution" going forward, citing a 4/2/12 story by Kentucky.com.
At one point, BB led the electronics industry and outpaced established concepts like Circuit City, Radio Shack, and Comp USA. However, when Apple Stores came along with its iPod, iPad, and iPhone products, the retailer fought hard to keep pace. With Apple's flashy and trendy marketing store presentation, coupled with low-price online retailers like Amazon.com, competition became fierce.
Official, despite having 50 stores on the closing list, remain optimistic. They believe shuttering stores will save the company $800 million. However, TheStreet, downgraded Best Buy stock (BBY) from a "buy" to a "hold." Analysts point to poor net income and profit margins. Undoubtedly, this concerns workers as they worry about their future.
What Best Buy Stores are on the Closing List?
This writer contacted the PR and Media Relations department at the company's main office to inquire about the future of employees on the list of stores closing in the future.
At this point, five stores in Minneapolis–Saint Paul (Twin Cities) and an outlet in San Antonio, Texas are aware their stores are closing. However, the Best Buy source did share happy news for concerned employees.
The electronics retailer is making every effort to "transition" employees affected, while making the impact as minimal as possible. To achieve that, BB is making severance packages available to employees that cannot find another job within the company.
"We recognize the impact this news has on the people who deserve respect for the contributions they have made to our business, and for customers who shop these stores today."
One employee at a Tampa Bay location spoke on the condition of anonymity.
"We are all scared about our jobs, but hopefully the company feels our pain," he said.
Got a feeling your neighborhood Best Buy is on the store closing list? If so, why?
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