Business & Tech

Edina's Best Buy Shutting Down This Fall

The Edina store is among five Twin Cities locations closing in 2012.

Edina's store is officially among 50 big box stores the company will be closing later this year, according to company officials.

The company announced today the York Avenue store will be closing sometime during the fall of 2012. It is among five Twin Cities locations shutting down, including stores in Brooklyn Center, Hutchinson, Lakeville and Rogers.

"This is not an easy decision to make," the company said in a statement. "We recognize the impact this news has on the people who deserve respect for the contributions they have made to our business, and for customers who shop these stores today. We are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way."

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The Edina location is actually the oldest Best Buy in operation, according to the company's website. It originally opened in April 1973 as Sound of Music, then transitioned to a Best Buy store in the '80s. Current Best Buy CEO Brian Dunn reportedly served as the store's general manager in 1989.

The company said it will work to assist more than 300 employees impacted by the closings.

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The news comes shortly after the company released its 2011 fourth quarter earnings. Closures and downed profits are not a surprise to many, as Best Buy reported shortfalls after its third quarter in 2011 as well. In January 2012, and suggested it was getting closer to bankruptcy.

Going forward, Best Buy's retail store strategy is to increase points of presence, while decreasing overall square footage. Based on results from store pilots conducted in 2010 and 2011, Best Buy will be deploying "at-scale" market tests of its new Connected Store format in the Twin Cities and San Antonio metro areas.

The store remodels are expected to be completed before the 2012 holiday season. Connected Stores are remodeled big box stores that focus on connections, services and multi-channel experience through a total transformation of both the store and the operating environment.

The company expects total big box square footage in these combined test markets to be reduced by almost 20 percent through store downsizing and closures, while points of presence will increase by more than 20 percent.

"These changes will also help lower our overall cost structure," CEO of Best Buy Brian J. Dunn said in the release. "We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices—which will help drive revenue. And, over time, we expect some of the savings will fall to the bottom line."

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