Best Buy is shuttering all 250 of its small-format mobile phone stores in the U.S., saying the locations have become less profitable.
A memo from the CEO to employees says the stores will close by the end of May and every effort will be made to retain the workers.
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The nation’s largest consumer electronics chain launched the stores more than a decade ago, before Apple’s iPhone was launched. The mobile phone business was growing quickly, with high profit margins.
But it said the business has matured and running the mobile stand-alones cost more than its larger stores, and that 85 percent of the stand-alones are within 3 miles of a big box store.
Best Buy says the stand-alone stores accounts for just over 1 percent of the company’s total revenue.
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