Nov
6
Best Buy to Make Big Buy
Posted by: gordiedutka | November 6, 2011 | 1 Comment
A source from British agency Reuters has reported that Best Buy has agreed to purchase the U.S. mobile phone venture of Britain’s Carphone Warehouse, which is the largest independent phone retailer in Europe. Set to be announced on Moday, sources have reported that the deal is being made for 1 billion dollars. This is the second transaction between the two companies as Best Buy purchased a 50% share of Carphone Warehouse in May of 2008 for 2.1 billion to launch Best Buy Europe, which failed mainly due to “a lack of brand recognition” in Britain. Best Buy “opened just 11 megastores in Britain” before ending expansion.
Instead of competing with electronic retailers in Britain with superior brand recognition, Best Buy has decided to focus on the U.S. market, notably the mobile phone market…how is this billion dollar purchase going to benefit them? I have a few thoughts..
1.Best Buy operates approximately 13 mobile stand-alone stores in the U.S., and they may be eager to open more of these locations as they may have been tremendously succesful.
2.Internal research may suggest that the mobile phone industry will see continuous growth, meaning that Best Buy will improve their in-store mobile phone department.
Comments
1 Comment so far
Loblaws is a retail store that offers a survey for customer feedback. By participating in the survey at https://storeopinion-ca.me/survey/, customers have a chance to win a $1000 Optimum Pc gift card.