For that reason, the big box stores will take on additional mobile phone responsibilities, a situation the company has been planning for.
Best Buy has tried to turn itself around by matching e-commerce giant Amazon.com Inc AMZN.O 's low prices, closing underperforming stores, and improving customer service.
So let's get the bad news out of the way first. There are at least six Best Buy Mobile stores in the St. Louis area: Saint Louis Galleria, South County Center, St. Clair Square, West County Center, Chesterfield Mall and Mid Rivers Mall.
In an internal memo obtained by Reuters, the nation's No. 1 consumer electronics retailer indicated that by May 31, 2018 it will have shuttered the 250 USA mobile phone shops, which not only account for less than one percent of the company's annual revenue, but are spatially a fraction of the size of its larger, brick and mortar big box stores.
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Best Buy launched the stores more than a decade ago, before Apple's iPhone was launched. "Fast-forward to 2018 and the mobile phone business has matured, margins have compressed and the cost of operations in our mobile stand-alone stores is higher than in our big box stores", Joly said in his notice.
On to the good news.
Best Buy Chief Financial Officer Corie Barry said the result was "extremely encouraging". This is mainly attributable to the 33 percent market share that Best Buy holds on TVs and strong sales growth in recent months. So, effectively, the company tripled its anticipated result.
While small in their physical footprints, the store closings will be another setback for shopping malls that have been grappling with declining traffic and a rash of store closures in the a year ago as a number of chains have gone bankrupt or pared back their stores amid the rise in online shopping. "We are especially proud of our 9.0% comparable sales growth in the quarter, which brings our annual comparable sales growth to 5.6% for the year. The level of energy and dedication to serving customers that I see across the company is truly inspiring".