Authors: Jeanette Torres
(MINNEAPOLIS) -- Facing losses and stiff competition from retailers like Amazon and Wal-Mart, Best Buy announced on Thursday that it will be closing 50 of its big box stores over the next year in an effort to cut costs.
The move comes as the retailer reported a $1.7 billion loss for its fourth quarter ended March 3.
Along with the store closures, Best Buy also plans to eliminate about 400 positions in its corporate and support areas. The goal, the company said in a statement, is to achieve $800 million in cost reductions by its fiscal year 2015.
"In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance," Best Buy CEO Brian J. Dunn said in a statement.
"These changes will also help lower our overall cost structure. We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices -- which will help drive revenue," Dunn added.
As part of the company's new strategy, Best Buy will remodel some of its big box stores with what it calls a "Connected Store" format. These stores will "focus on connections, services and multi-channel experience through a total transformation of both the store and the operating environment."
The company also expects to expand on its Best Buy Mobile small format stores, opening another 100 by next year.
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