Friday, March 30, 2012
Best Buy Goes to China
http://money.cnn.com/2012/03/29/markets/best_buy/index.htm?source=cnn_bin
By the year 2013, Best Buy has plans to close 50 big box stores in the U.S. During the same time that they take these 50 stores down they will be rebuilding them in China. When these buildings close they will open 100 "mobile small format stand-alone stores" and will also open 14 in China. These mobile small format stand-alone stores are basically what the article says is they are mini stores inside of strip malls or something along the lines of it. Best Buy currently has 1,105 big box stores in the U.S not including the ones being closed. In China they currently have 185 big boxes under the company's Five Star brand. Best Buy has been struggling to compete in a market that has been dominated by online retailers such as Amazon. Best Buy states that they are closing stores to lower costs.the company says that they will save $250 million dollars in 2013 and will save $800 million dollars in costs in 2015. Considering the economy, consumers, and local communities do you think that it is a good thing that Best Buy is moving to China?
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I think it is good that we are closing some Best Buy stores in the U.S and opening smaller ones. It will lower costs and the article said that we will save $250 million when the stores close. I dont think it would be a bad thing if they move to china because i dont think that it can do anything to hurt the U.S.
ReplyDeleteI believe that it's both a good and bad thing that Best Buy is doing. The article mentions all the money that will be saved and that is a good thing considering our economy right now. The reason why Best Buy is having such a tough time competing is because technology is way too expensive and therefore online stores are selling their products at lower rates. This idea is also a bad thing because all these workers are going to lose their jobs and that will just make more people unemployed.
ReplyDeletewith the closing of these 50 Best Buys i think that it could be bad because there will be a lot of people out there losing there jobs. this doesn't help with our unemployment rates that are already bad. It is good that its saving 250 million dollars which will help with the economy, but i don't get why China?
ReplyDeleteThough this change might be good for Best Buy, because of all the savings they'll get, it will end up really hurting our economy. I totally agree with cori jonny and the others about how many people will lose their jobs and thus making our unemployment rates worse, which is mostly why believe this change is bad for our economy. But it'll hurt it in more ways then one, this is so because there will be a ton of random closed down buildings where best buys used to be, therefore also making these building owners lose money also. So this whole closing 50 and opening 50 somewhere else business is only going to be good for Best Buy not America.
ReplyDeleteIn my opinion Best Buy closing these fifty stores is a bad idea. This will destroy many jobs for Americans. Though the corporation may find it as the only to compete by moving to China. Taking away these 50 stores makes a large number of people lose their jobs and they will not get these jobs back, these peoples jobs will be offered to people in China.
ReplyDeleteconsidering the economic status of the united states i feel that closing some stores in america and moving them to china is a good idea that could make help best buy get back on top in the retail industry and lower there prices to be able to compete with other marketing companies.
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