Is the era of in-store electronics shopping coming to an end?

In light of the recent announcement of the nationwide closure of several stores, many consumers are finding themselves wondering about the fate of Best Buy. The electronics retail chain has reported it plans to close between 10 and 15 stores in the next year after closing 24 over the prior year. That action has raised questions on whether Best Buy will remain relevant as more consumers shift to online shopping.

So before you decide to sell off your gift cards, let’s turn on the lights and get to the truth behind these shutdowns. Is this the beginning of the end for Best Buy, or a very clever move in light of changing trends?

The Shocking Announcement

That signals a shiver amongst the retailers, Best Buy recently declared its intention to shut 10 to 15 stores in the next year. This news is followed by 24 store closures in the previous year; people start to question if this marks the start of the end for this electronics giant.

Unpacking the Numbers

But let us take a closer look at what these closures partially imply before making any conclusions. Despite 10 to 15 store closures may sound quite critical, one should consider the nature of this number. What’s more, Best Buy currently manages over 1,000 stores in the United States of America Only. CFO Matthew Bilunas said that such measures are taken as a result of the “strategic evaluation of stores about their expiring leases.” This appears to be more of a planned action as compared to an action born out of compulsion. When asked, Best Buy pointed at changes in consumer behavior patterns and dynamics of product evolution as the main reasons.

The Bigger Picture: Adaptation, Not Extinction

Contrary to the impression of the declining giant, Best Buy seems to adapt to the changes that characterize the current retail environment. CEO Corie Sue Barry suggested the direction of ‘excitement’ and ‘relevancy’ at the center of store areas, suggesting investment in the physical retail environment. They are looking for outlet centers and small stores in places where it hasn’t been before or in cases it closes big stores. Further, for years now, Best Buy has been investing in its e-commerce strategies, since people are turning more and more to online shopping.

What This Means for Shoppers

Even though some communities may not have their locally owned Best Buy, the company is ensuring that its reach is felt through various store formats and online. Renovated outlets will offer a thrilling and fresh shopping experience to consumers who like to shop physically. In addition, the company has maintained a strong and efficient online purchase and delivery solution so that customers can purchase items even if they have no physical store in their locality.

The Verdict

Therefore, is Best Buy planning to shut down its operations? The short answer is no. It is clear that the company is in transition but most of the changes seem to be proactive and meant to safeguard the future of the business rather than a sign of decline.

Thus, the shifting dynamics of the retail environment suggest that it is a company in progress that is evolving to a new reality rather than a company on the verge of collapse. It is obvious that Best Buy will continue to feature in the electronics retail business but with adjustments to its operation method. What do you think about the strategy of Best Buy?