Business

Carphone Warehouse to close all 11 Best Buy shops

  • 7 November 2011
  • From the section Business
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Best Buy store in the West Midlands
Image caption The UK joint venture has failed to make a profit

Carphone Warehouse is to close all of its 11 Best Buy stores across the UK, the company has announced.

The move puts 1,100 jobs at risk at the outlets, which sell electronic goods, but the firm said it hoped to find the "large majority" alternative work.

The 11 Best Buy stores are part of Best Buy Europe, a joint venture between US group Best Buy and Carphone Warehouse.

The first Best Buy store in the UK only opened in April of last year. The outlets have failed to make a profit.

'Economic times'

Best Buy's 11 UK outlets are in Liverpool, Derby, Bristol, Nottingham, Rotherham, Dudley, Thurrock, Southampton, and three places in London - Croydon, Hayes and Enfield.

Carphone Warehouse and Best Buy initially planned to open 200 Best Buy stores across the UK and continental Europe.

Best Buy Europe was formed in 2008 when Best Buy paid £1.1bn to buy a 50% stake in Carphone Warehouse's retail division.

Carphone Warehouse said the focus would now be on selling more electronics goods from Best Buy Europe's 805 Carphone Warehouse stores in the UK, and 1,648 Phone House shops in continental Europe.

Best Buy Europe said in a statement: "Since 2008, the consumer electronics marketplace has changed substantially as a result of the economic times, the progress of online retailing and the growth of new products such as smartphones, tablets and apps."

It comes as Best Buy plans to buy its British partner out of a separate and fast-growing US mobile phone joint venture for £865m.

The Best Buy Mobile venture has been benefiting from soaring demand for smartphones, such as Apple's iPhone.

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