Best Buy To Boost Spending On Stores, Technology
Richfield-based Best Buy Co. Inc. plans to boost spending in the year ahead on retail store, e-commerce and technology upgrades.
During the company’s fiscal 2015, which ended Jan. 31, Best Buy reported capital expenditures of $551 million. According to the its latest annual filing with the U.S. Securities and Exchange Commission, the company notes: “In fiscal 2016 we estimate capital expenditures of approximately $650 million to $700 million, with the focus on retail store, e-commerce and information technology projects.”
The company made its annual filing with the SEC on Tuesday.
That will include costs for consolidating its business in Canada, Best Buy spokeswoman Amy von Walter tells Twin Cities Business. On Saturday, the company announced plans to close 66 Future Shop stores in Canada and convert an additional 65 Future Shop stores into Best Buy locations.
The move eliminated 500 full-time jobs and 1,000 part-time positions. The company announced plans to make investments of up to $200 million to upgrade its Canadian stores and web site.
Additionally, von Walter says that the increase in spending is driven in part by plans to open 60 new Pacific Home & Kitchen stores and 20 additional Magnolia Design Center locations in fiscal 2016. Both Pacific Home & Kitchen and Magnolia Design Center are store-within-a-store concepts that operate inside of Best Buy locations.
Best Buy reported net income of $1.2 billion on revenue of $40.3 billion for its fiscal 2015. The company is in the process of overhauling its business under CEO Hubert Joly, who stepped into the top job for the retailer in September 2012.
Best Buy’s annual filing also notes that the company closed 48 stores during fiscal 2015, primarily stand-alone Best Buy Mobile stores which accounted for 40 of the closures. At the end of January, Best Buy had a total of 1,448 stores.