Best Buy said Thursday it plans to close 50 of its U.S. big-box stores, cut 400 corporate jobs and trim $800 million in costs, all in an attempt to revamp the struggling chain, Mercury News reported.
It is testing a smaller store model, closer to what Apple is already doing, in both Minneapolis, one of its densest markets, and San Antonio, Texas, one of its least dense markets, to see how customers react, the Star Tribune reported. How many other big-box stores will shut down will ultimately depend on the success of its "Connected Store" remodels, the Star Tribune reported.
Best Buy is not the traditional big-box store to start focusing on smaller stores, the San Francisco Chronicle reported. Wal-Mart is building around 100 small-format stores this year, and Target is opening five CityTarget locations, the San Francisco Chronicle reported.