The Carphone Warehouse is poised to close its Best Buy UK superstores, citing ongoing difficulties and changing conditions in the consumer electronics market.
The joint venture, which was created when Best Buy acquired 50 per cent of Carphone Warehouse’s retail arm, opened its first British outlet at Lakeside Shopping Centre in April 2010. However, growth has failed to match expectations and Carphone Warehouse is set to concentrate on developing a new store model.
“After conducting a thorough strategic review of our operations, we believe that our capital investment and ‘connectivity’ strategy should be prioritised within our Carphone Warehouse stores as they offer a higher and proven rate of return,” said Best Buy Europe chief executive Andrew Harrison.
Carphone Warehouse has also sold its stake in Best Buy Mobile US and Canada for £838m, as well as creating a new global partnership with Best Buy to exploit new global connectivity options. In addition, Best Buy has been given call options over its European division to “formalise the long-term ownership structure”.
Last week, a survey conducted by Virgin Media Business found many flagship chain stores had invested in technology such as mobile commerce and touch-screen terminals.
