Best Buy to open more online, mobile stores

NEW YORK: Best Buy plans to boost its Web presence and open a greater number of small stores in the United States targeting mobile customers in an effort to win back market share from the likes of Amazon and Wal-Mart.

The largest US consumer electronics chain reported three straight quarters of same-store sales declines and forecast a fall in same-store sales in the current quarter, mainly due to its ailing television business.

Best Buy, whose shares fell 2.4 per cent in mid-day trading, said it wants to double its current $2 billion online business within 3 to 5 years.

Also, Best Buy is now aiming for 600 to 800 Best Buy Mobile stand-alone stores in the United States within five years, even as its cuts US 'big box' store square footage by 10 per cent over the next three to five years.

The news came after many investors raised concerns about the retailer's huge overhead costs and oversized stores at a time when many shoppers go online to buy gadgets.

The retailer also plans to invest more in its profitable Chinese brand, Five Star, hoping to more than double its revenues in China to $4 billion within five years. It sees a total of 400 to 500 Five Star stores in the next five years.