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Best Buy Reveals Stores Being Closed, But None in Ocean County

No New Jersey locations affected, retailer announces

By Caitlin BurgessLisa Baumann, and Ken Stone

Best Buy stores in Ocean County are safe from the latest closures, the company announced Saturday.

“This morning, we have confirmed the remaining 42 store locations [out of 50] that will close,” Best Buy said in a news release (attached as PDF). … Employees of these 42 stores have been notified this morning.”

In fact, none of the locations in New Jersey are affected by the announcement. Best Buy has two locations in Ocean County: a new store in Manahawkin and the first Ocean County location in Brick.

However the list of store closures will shutter 42 locations outside of New Jersey, including 15 in California. Approximately 400 employees are expected to lose jobs.

“This was not an easy decision to make,” Best Buy said. “We chose these stores carefully, and are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way. But we also recognize the impact this news has on the people who deserve respect for the contributions they have made to our business.”

The company said it will be working to help affected employees find other positions inside Best Buy.

“If they don’t find new positions, or if they choose not to work at a different location, a transition including severance packages will be available,” the company said. “We expect most of these stores will permanently close by May 12. Three additional locations are expected to permanently close later this summer.”

The news comes after the company based in Richfield, MN, released its fiscal year fourth-quarter earnings, showing a $1.7 billion loss in revenue. In addition, the Global Post reported the company aims to open 50 stores in China by 2013. The company did not say which stores would close.

The news of closures and downed profits are not a surprise to many, as Best Buy reported shortfalls after its third quarter in 2011 as well.

n January 2012, a Forbes Magazine article predicted a tough year for the company and also suggested it was getting closer and closer to bankruptcy every day.

Going forward, Best Buy’s retail store strategy is to increase points of presence, while decreasing overall square footage. Based on results from store pilots conducted in 2010 and 2011, Best Buy will be deploying “at-scale” market tests of its new Connected Store format in the Twin Cities and San Antonio metro areas.

The store remodels are expected to be completed before the 2012 holiday season. Connected Stores are remodeled big box stores that focus on connections, services and multi-channel experience through a total transformation of both the store and the operating environment.

The company expects total big box square footage in these combined test markets to be reduced by almost 20 percent through store downsizing and closures, while points of presence will increase by more than 20 percent.

“These changes will also help lower our overall cost structure,” CEO of Best Buy Brian J. Dunn said in the release. “We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices—which will help drive revenue. And, over time, we expect some of the savings will fall to the bottom line.”

For Immediate Release

Media Contact:
Kelly Groehler, Best Buy
(612) 291-6115 or kelly.groehler@bestbuy.com

Best Buy Confirms Closure Plans for
Remaining 42 U.S. Big Box Stores
Brings total of store closures to 50 by end of 2012
Most locations will permanently close by May 12; three additional
locations to close by late summer

RICHFIELD, Minn. – April 14, 2012 – Best Buy announced plans March 29, 2012 to close 50 U.S.
stores as part of a number of key initiatives for this year. To date, we have closed two stores this year
(one in Kansas City, Mo., and one in Scottsdale, Ariz.), plus have notified five Twin Cities stores and
one San Antonio store that they will close later this year.

This morning, we have confirmed the remaining 42 store locations that will close. A complete list of
store locations can be found at the end of this statement. Employees of these 42 stores have been
notified this morning.

This was not an easy decision to make. We chose these stores carefully, and are working to ensure
the impact to our employees will be as minimal as possible, while serving all customers in a
convenient and satisfying way. But we also recognize the impact this news has on the people who
deserve respect for the contributions they have made to our business.

We will be working to help these employees find other positions inside Best Buy. If they don’t find new
positions, or if they choose not to work at a different location, a transition including severance
packages will be available.

Three of these 42 locations remain open today, Saturday; the rest of the affected stores are closed
today, and will reopen Sunday, April 15. Customers currently doing business with these stores are
being contacted today.

We expect most of these stores will permanently close by May 12. Three additional locations are
expected to permanently close later this summer.

Best Buy continues to have additional retail store locations – big boxes and standalone Best Buy
Mobile stores – for customers to choose from in these affected locations.

More broadly, our previously announced retail store actions are intended to increase points of
presence, while decreasing overall square footage, for increased flexibility – including key store
remodels with a new Connected Store format, while continuing to build out the successful Best Buy
Mobile small format stores throughout the U.S. We will continue to share details of such actions as the
year progresses. We are committed to making it easier for customers to shop with us, whenever and
wherever they want.

Locations of 2012 U.S. Best Buy store closings

Casa Grande  1004 N Promenade Pwy Casa Grande AZ
Lake Pleasant 10134 W Happy Valley Rd Peoria AZ
East Palo Alto 1751 E Bayshore Rd East Palo Alto CA
Westwood 10861 Weyburn Ave Los Angeles CA
Manteca 934 Perimeter Dr Manteca CA
Moreno Valley East 27220 Eucalyptus Moreno Valley CA
Ontario 4120 E 4th St Ontario CA
Pittsburg 4405 Century Blvd Pittsburg CA
Jamboree 2857 Park Ave Tustin CA
Arapahoe & Parker 15800 E Briarwood Cir Aurora CO
The Forum 9370 Dynasty Dr Fort Myers FL
Oldsmar 11655 W Hillsborough Ave Tampa FL
Fayetteville 128 Pavilion Pkwy Fayetteville GA
Loganville 4014 Atlanta Hwy Loganville GA
Addison 1038 N Rohlwing Rd Addison IL
87th & Dan Ryan 8900 S Lafayette Ave Chicago IL
Deerfield 200 S Waukegan Rd Deerfield IL
Matteson 4707 Lincoln Mall Dr Matteson IL
Mundelein 1100 N Rt 83 Mundelein IL
West Dundee 979 W Main St West Dundee IL
Speedway 10500 Parallel Pkwy Kansas City KS
Back Bay 360 Newbury St Boston MA
Wareham 2421 Cranberry Hwy Wareham MA
Inner Harbor 600 E Pratt St Baltimore MD
Hunt Valley 118 Shawan Rd Hunt Valley MD
Biddeford 405 Mariner Way Biddeford ME
*Brooklyn Center 5925 Earle Brown Dr Brooklyn Center MN

*Edina 3200 Southdale Cir Edina MN
*Hutchinson 1350 Hwy 15 S Hutchinson MN
*Lakeville 18350 Orchard Trl Lakeville MN
Rochester South 4540 Maine Ave Se Rochester MN
*Rogers 20870 Rogers Dr Rogers MN
Ellisville 15678 Manchester Rd Ellisville MO
Monroe 3151 W Highway 74 Monroe NC
Rocky Mount 1100 N Wesleyan Blvd Rocky Mount NC
Millard 12210 K Plz Omaha NE
East River Plaza 517 E 117th St New York NY
Steelyard Commons 3506 Steelyard Dr Cleveland OH
Salem Mall 5031 Salem Ave Dayton OH
Caguas Las Americas Expry PR52 Zafiro Caguas PR
Middletown 890 W Main Rd Middletown RI
Hickory Hollow 5255 Hickory Hollow Pkwy Antioch TN
Techridge 12901 North I-35 Austin TX
*Woodlake Parkway 6218 Woodglen San Antonio TX
Landmark Mall 5901 Stevenson Ave Alexandria VA
Cosner’s Corner 9745 Jefferson Davis Hwy Fredericksburg VA
East Richmond 4410 S Laburnum Ave Richmond VA
Mill Plain 16611 Se Mill Plain Blvd Vancouver WA
* indicates stores notified March 29, 2012 of closure plans
Note: Two stores in Kansas City, MO (Metro North) and Scottsdale, AZ (Shea) permanently closed in
February 2012.

Best Buy to Close 50 Stores Next Year

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