Consumer electronics retailer Best Buy to shut operations in Mexico
Category: #retail  By Saipriya Iyer  Date: 2020-11-27
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Consumer electronics retailer Best Buy to shut operations in Mexico

Best Buy, a leading American consumer electronics retailer, has reportedly decided to shut all its operations in Mexico. The move was announced after the firm’s Chief Executive Officer, Corie Barry revealed the firm’s decision to exit the country during its quarter three earnings call with analysts.

Barry stated that the move is a part of the company’s assessment of its business model to enhance strategic efforts and further review of areas that can be scaled back.

While speaking about development, Barry stated that most importantly, the company viewed it to be highly critical that the result of this evaluation would make sure that its focus and resources are closely pointed towards the opportunities it sees ahead.

Barry further stated that as a result, in this quarter, the company made the tough decision of shutting down all its operations in Mexico. The company thanked its teams in Mexico for their immense work throughout the past years. adding that, all the teams should be proud of their achievements.

The company, which operated a total of 49 stores in 2020 in Mexico, did not provide any information regarding the number of jobs that were risked due to the shutting of all these stores.

In the third quarter, the domestic revenue of the consumer electronics retailer increased by over 21.0% to reach $10.85 billion.

The company also raised its minimum wage to $15 per hour, restored short-term incentive compensation for employees, and also paid recognition bonuses to its field employees.    

Earlier in 2020, the company furloughed over 51,000 employees to stay afloat as COVID-19 pandemic worsened and the associated lockdowns became more strict. The decision affected the company’s domestic hourly waged employees, which also included almost all part-time employees. The company stated that the move was a part of its plan to achieve financially stability after the pandemic ends.

Source credit: https://www.retail-insight-network.com/news/best-buy-mexico-exit/



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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