Longstanding Best Buy Location Shuts Down After 30 Years – 25 More Stores to Close
A popular Best Buy store in Gaithersburg, Maryland, will shut its doors at the end of the month after 30 years in the same location. The Gaithersburg 270 Center store will officially close on October 26, marking another store closure as the electronics retailer confirms additional locations will be axed across the U.S.
The store originally opened in the 1990s, and the closure comes as little surprise to some shoppers. Many have expressed their thoughts on the decline of the store’s appeal in recent years.
Shoppers Weigh In on Closure
The news of the Gaithersburg Best Buy closure was first reported by The MocoShow, and customers took to the comment section to share their opinions. One shopper said, “When they stopped selling movies, that’s when I stopped shopping there.” Another added, “This is how they killed their business model. Take everything out that drew in the foot traffic like movies and music.”
Others echoed similar sentiments, with one shopper stating, “No loss, Best Buy hasn’t been best for a long time now.”
CEO Confirms More Closures
Best Buy CEO Corie Barry confirmed in an earnings call that more store closures are on the horizon. Shoppers can expect 10 to 15 stores to shutter in 2024, with a similar number set to close in 2025. This means that potentially 25 or more stores could close by the end of 2025 as part of the company’s restructuring plan.
CFO Matthew Bilunas added that the company would “continue to close existing traditional stores during our rigorous review of stores as their leases come up for renewal.”
Several factors were cited for the closures, including shifts in consumer spending habits, inflation, and supply chain disruptions from the COVID-19 pandemic.
Sales Struggles
Sales have been a challenge for Best Buy in recent years. At the end of the second quarter of 2024, the company’s revenue dropped by about three percent, from $9.6 billion to $9.3 billion compared to the same period in 2023. Additionally, the company saw an overall six percent revenue decline in the previous fiscal year, according to Retail Dive.
CEO Corie Barry acknowledged that consumer habits have shifted, noting that customers are now looking for value during sales events but are still willing to spend on high-price tech products when necessary or when new, compelling technology is available.
Despite these challenges, Barry remains optimistic about the company’s future, saying, “We don’t believe anything in our data signals that customer behavior has changed in a way that would make us increasingly cautious.”
New Store Format in Canada
Amid U.S. closures, Best Buy is also expanding its presence in Canada under a new business format. Earlier this year, the company announced a partnership with Bell Canada, the country’s largest telecommunications company, to open 167 Express stores by the end of the year.
These smaller Express locations will offer a curated selection of tech products and provide in-store pickup for online orders. Additionally, Geek Squad specialists will be on-site to offer services and protection plans for phones and gadgets.
Gaithersburg Shoppers’ Options
While the Gaithersburg location will close soon, local shoppers can still visit Best Buy stores in nearby Germantown and Rockville. As of now, Best Buy operates 1,053 locations across the U.S., but more closures are expected as the company continues to adapt to the changing retail landscape.
