Best Buy to close all its UK stores

Just a year after opening its first Best Buys store, Carphone Warehouse has announced plans to pull out of the joint venture with US Group Best Buy.

The UK retail giant will now close all of its 11 Best Buy stores across the UK, because the venture failed to become profitable. The company said it would be concentrating on selling from its 805 Carphone Warehouse stores in the UK.

The move, which is currently in the consultation phase, will affect around 1,100 jobs but the company said it hoped to find alternative work for many of these employees.

Best Buys UK was formed in 2008 and it was planned to open up to 200 stores around the UK and in Europe, offering cheaper deals for electronic goods. However, the consumer electronics market has been badly hit by the continuing economic downturn.

In a statement Carphone Warehouse said: "Since 2008, the consumer electronics marketplace has changed substantially as a result of the economic times, the progress of online retailing and the growth of new products such as smartphones, tablets and apps."

There are three UK Best Buy outlets in London, with the remaining eight stores in Liverpool, Derby, Bristol, Nottingham, Rotherham, Dudley, Southampton and Thurrock.