Closure of Best Buy's Big Box Stores in the UK



Case Code : CLBS126
Publication date : 2012
Subject : Business Strategy
Industry :Electronics Retail
Length : 03 Pages


Short Case Study Price: INR 100;

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The case is about US-based electronics Best Buy Inc.'s venture in the UK. It discusses Best Buy's entry strategies, its expansion, and subsequent closure of its big box stores in the UK. It analyzes the main reasons for the failure of the company’s big box stores in the UK market.


To understand the reasons for the failure of Best Buy’s big box stores in UK.
To evaluate the current market situation in the electronic retail industry in the UK.


In January 2012, Best Buy Europe announced the closure of its big box stores in the UK. Best Buy Europe was a joint venture between US-based electronics retailer Best Buy Co., Inc. and UK-based Carphone Warehouse (CPW) , one of the largest mobile and electronic retailers in the UK. Market analysts said that Best Buy was closing down its big box stores in most of the countries in which it was operating as a part of cost-cutting strategies...

Questions for Discussion:

1. Discuss the reasons for the dismal performance of Best Buy UK.
2. Analyze the reasons for the closure of the big box stores in many countries like China, USA, Turkey, the UK, etc.
3. How can retailers remain competitive even during an economic recession?

Key words:
Best Buy, Carphone Warehouse, big box stores, UK, Europe, Dixons, Future Shop, Jinangsu Five Star Appliance Co

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