This massive retailer now braces for more layoffs amid flat revenue reported for Q4, while aiming to make in-store improvements.
Best Buy incurred $169 million of fourth-quarter restructuring charges related to employee layoffs, the company said Thursday.
The restructuring is intended to “right-size resources to better align with the company’s revenue outlook for FY25,” among other goals.
The company declined to confirm to Retail Dive how many people were affected by layoffs.
Best Buy’s fourth-quarter revenue was flat, falling less than 1% to $14.6 billion, and comparable sales declined nearly 5% for the holiday quarter, the company said in an Thursday earnings announcement.
Domestic revenue was also flat at $13.4 billion, with U.S. comps declining 5% in Q4.
Net earnings declined 7% to $460 million from $495 million a year ago, reports Retail Dive.
When asked whether the company could provide additional details of terminations, a spokesperson in an email referenced a statement from CEO Corie Barry who referenced the restructuring in the call.
“While we made these decisions during the fourth quarter, which resulted in a restructuring charge many of the actions will be implemented through the first half of FY25 and we will provide more details as we move through the year.”
Best Buy declined to provide any further comment regarding the terminations.
“Over the final quarter, the market was soft but Best Buy underperformed it and lost share,” Neil Saunders, managing director of GlobalData, said in emailed comments.
“This was especially so in appliances where retailers like Home Depot performed much better, and in consumer electronics and computing where players like Apple and Amazon are outperforming.
Macroeconomic conditions continue to pressure retail and the consumer electronics segment in particular,” Barry said on a call.
While inflation has slowed, prices for essentials like food and housing remain high.
Still, “we remain confident that our industry will grow again after two years of decline,” Barry said.
“This is simply a matter of the timing.”
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Also Read: A New Wave of Unexpected Layoffs Now Hits Wisconsin
Other Economy News Today
This massive grocery store is now shutting its doors soon at a historic location which has operated for over 60 years.
The Giant Food store on Langston Boulevard in Arlington, Virginia will permanently close on Thursday, February 29.
Giant Food has anchored the Lyon Village Shopping Center, at 3115 Langston Blvd. (formerly Lee Highway), for more than 60 years.
It is at the intersection of Langston Boulevard and Spout Run Parkway.
“In the normal course of evaluating our business and local trade areas, we determined that we can adequately serve this community through several other nearby Giant Food locations, as well as our online services, Giant Pickup and delivery,” Giant said in an emailed statement.
The nearest Giant Food store is on Washington Boulevard in Virginia Square, about a mile away.
Lyon Village Shopping Center’s other tenants include CVS Pharmacy, burger restaurant BGR, Starbucks, The Italian Store, and Big Wheel Bikes.
Giant said all employees at the Lyon Village store are being offered transfers to other Giant locations.
A spokesperson for the grocery store made the following statement:
“In our ongoing assessment of business dynamics and local trade areas, we’ve concluded that the needs of this community can be adequately met by several nearby Giant Food locations, as well as our online services, Giant Pickup, and delivery.
We want to express our sincere gratitude to the Arlington community for their support over the 60 years that Giant Food has been a part of this neighborhood, and we look forward to welcoming our shoppers at our other local Giant Food locations.
We appreciate the work our store associates have done to serve this community, and all associates from the store are being offered the opportunity to transfer to other Giant locations.
[Furthermore] We are committed to supporting our employees through this transition and ensuring that they have continued opportunities within our company.”
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Also Read: This Massive Restaurant Is Now Closing 41 Locations
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