Best Buy closing UK stores, buys out Best Buy Mobile

By Geoff Duncan November 7, 2011

Image used with permission by copyright holder

Best Buy might be a leading big-box electronics retailer in the United States, but the company doesn’t seem to be able to extend that success to the United Kingdom and Europe. Today, Best Buy announced it will be closing down its nascent big-box store operation in the United Kingdom, shuttering some 11 stores and focusing its European retail operating on an installed base of about 2,500 “small box” mobility stores. Best Buy is also buying out the UK’s Carphone Warehouse’s stake in Best Buy Mobile’s U.S. and Canadian operations for $1.3 billion in cash, giving the company full control over its mobile efforts in the United States.

However, Best Buy and Carphone Warehouse will remain partners: the companies have announced the launch of a new “Global Connect” which will aim to extend the business success of Best Buy Mobile to other worldwide markets, with China and Mexico apparently being first on the list.

Recommended Videos

“Each of these actions represents an exciting growth opportunity for Best Buy and near and long-term value for our shareholders,” said Best Buy CEO Brian Dunn, in a statement. “No other retailer has our carrier and vendor relationships across all product categories, our well-established multi-channel presence and the Geek Squad ensuring that you walk out with your technology working.”

Best Buy blamed closing the big-box UK store closures on challenging economic conditions. The company opened the stores about 18 months ago, and so far has lost nearly $130 million trying to sustain the operations. The company had initially planned to roll out as many as 100 stores in Britain then expand big-box operations across Europe.

Best Buy says most of the 1,000 or so staff in its UK big box operations will be redeployed to other areas. The company will continue to operate some 2,500 “small box” stores in Europe focussed on mobile technology, upgrading many to the company’s “Wireless World” format.

However, while European big-box stores may have failed, Best Buy Mobile has done relatively well in the U.S. and Canadian markets, leveraging significant consumer interest and market growth in the mobile technology arena. Acquiring Carphone Warehouse’s interest in Best Buy Mobile’s U.S. and Canadian operations puts Best Buy in total control of that business—and lets it reap all the rewards.

Best Buy and Carphone Warehouse partnered on Best Buy Mobile back in 2008, when Best Buy bought half of Carphone Warehouse’s retail business for about $2.1 billion as a way to step into the UK and European retail market. Carphone Warehouse seems to be walking away from Best Buy Mobile with a good price: the buyout is worth more than Carphone Warehouse’s market valuation. The company says it will return the $1.3 billion it receives from Best Buy to its investors.

Earlier this year, Best Buy scrapped plans to open Best Buy-branded stores in Turkey and China.

Former Digital Trends Contributor

Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

Computing

How to change margins in Google Docs

Laptop Working from Home

When you create a document in Google Docs, you may need to adjust the space between the edge of the page and the content --- the margins. For instance, many professors have requirements for the margin sizes you must use for college papers.

You can easily change the left, right, top, and bottom margins in Google Docs and have a few different ways to do it.

Computing

What is Microsoft Teams? How to use the collaboration app

A close-up of someone using Microsoft Teams on a laptop for a videoconference.

Online team collaboration is the new norm as companies spread their workforce across the globe. Gone are the days of primarily relying on group emails, as teams can now work together in real time using an instant chat-style interface, no matter where they are.

Using Microsoft Teams affords video conferencing, real-time discussions, document sharing and editing, and more for companies and corporations. It's one of many collaboration tools designed to bring company workers together in an online space. It’s not designed for communicating with family and friends, but for colleagues and clients.

Computing

Microsoft Word vs. Google Docs

A person using a laptop that displays various Microsoft Office apps.

For the last few decades, Microsoft Word has been the de facto standard for word processors across the working world. That's finally starting to shift, and it looks like one of Google's productivity apps is the heir apparent. The company's Google Docs solution (or to be specific, the integrated word processor) is cross-platform and interoperable, automatically syncs, is easily shareable, and perhaps best of all, is free.

However, using Google Docs proves it still has a long way to go before it can match all of Word's features -- Microsoft has been developing its word processor for over 30 years, after all, and millions still use Microsoft Word. Will Google Docs' low barrier to entry and cross-platform functionality win out? Let's break down each word processor in terms of features and capabilities to help you determine which is best for your needs.
How does each word processing program compare?
To put it lightly, Microsoft Word has an incredible advantage over Google Docs in terms of raw technical capability. From relatively humble beginnings in the 1980s, Microsoft has added new tools and options in each successive version. Most of the essential editing tools are available in Google Docs, but users who are used to Word will find it limited.