Best Buy closes store in New York, many more closings expected
Best Buy has laid off 5,000 workers and has confirmed that more store closings are expected this year.
Last month, Best Buy announced plans to close five stores in the United States over the next month. Of these five locations, one store is in New York. Best Buy has confirmed plans to close a store in Syracuse as well as two stores in Virginia, one store in Illinois and another in Massachusetts.
On Thursday, Best Buy announced that it had laid off 5,000 full-time employees from the store. The company also confirmed that it has closed 40 stores in the past two years, around 20 each year, and plans to close more in 2021.
“As part of the review process, we have closed approximately 20 large format locations each of the past two years and plan to close more this year,” CEO Corie Barry told analysts on Thursday. “We have also reduced the average length of our leases, which will continue to give us flexibility. “
Best Buy has 450 store leases that will expire over the next three years and the company doesn’t plan to renew all of them, CNN reports.
The company’s online sales have increased, and Best Buy plans to hire 2,000 part-time workers. The company estimates that 40% of all online sales in 2021 will be made online, up from 19% in 2019.
Company officials say the latest changes, along with future store closings, are due to Best Buy having to adapt the way it operates, due to changing sales.
“In addition to our physical stores, our operating model must evolve to respond to the changing purchasing behaviors of our customers that have been accelerated by the pandemic,” Barry said, according to USA Today. “The sudden and lasting shift that customers have made to shop more regularly and transparently across all of our channels has forced us to take a look at how we do our jobs. “
In the Hudson Valley, Best Buy has branches in Poughkeepsie, Monroe, Middletown, Mohegan Lake, West Nyack, Hartsdale, Yonkers, and Mount Vernon.