Block 1
Ms. McMurray & Mrs. Ramshaw

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?