Best Buy to open shop in UK

Best Buy, the US consumer electronics shop, is planning to roll out more than 200 stores nationwide, according to a report by the Financial Times, after coughing up £1.1 billion for a 50 percent stake in Carphone Warehouse last May.British consumers can expect to see Best Buy's yellow price tag...

Best Buy, the US consumer electronics shop, is planning to roll out more than 200 stores nationwide, according to a report by the Financial Times, after coughing up £1.1 billion for a 50 percent stake in Carphone Warehouse last May.

British consumers can expect to see Best Buy's yellow price tag adorning shopfronts from 2009 onward, followed by an expansion into other European markets. The retailer is avoiding strong competition in Germany and France and instead targeting countries with fewer rivals. Apparently five stores will open at the launch next year, which will no doubt place increased pressure on competitors Currys and PC World.

Carphone Warehouse plans to announce more details on its plans including "broad store format" during an October trading update. It is currently unknown if it will sell white goods in addition to regular consumer electronics. According to FT.com, "people familiar with the plans said a typical Best Buy store in the UK would be 30,000 sq. ft with an annualised rent of about £1.5m, requiring £1.5m of working capital and about £2.5m of capital expenditure."

Economic conditions have resulted in a 45 percent drop in Carphone's share price this year, to the point of being "in danger of falling out of the FTSE 100 only a year after being promoted," says the FT.com article.

Written By

Former staff writer for GameSpot.co.uk, now marketing guy for a certain major online retailer....

Discussion

34 comments
lanista
lanista

@clyde46 "I wondered how long it would take for US companies to make a move in the country." I hate to break this to you, but US companies have been in the UK for a long time Take Ford as an example, the Model T was not just sold - but also manufactured - in the UK 90+ years ago...!

ShadowJake
ShadowJake

Best Buy is great. They have an awesome selection of cds, PC games,and computer. accessories. I go there for most of my computer and music needs, but i go to Gamestop for console video games cuz Best Buy's prices tend to be high in that category. I don't know why but oh well. Great store though. Hopefully you guys in the UK enjoy it

SalarianChemist
SalarianChemist

*** ABSOLUTE PROOF *** *** Best Buy is NOT a good place to deal with *** Here are some website links that PROVE the things I said are true about quite a few states seeking legal action against the Best Buy corporation for Deceptive Business Practices, Bait-n-Switch, and problems with Warranty/Return/Exchange: *** Wisconsin sues Best Buy: hxxp://www.doj.state.wi.us/news/2005/nr052405_CP.asp *** Connecticut sues Best Buy: hxxp://www.eweek.com/article2/0,1759,2136241,00.asp *** Best Buy Website Deception: hxxp://www.news.com/8301-10784_3-6164441-7.html hxxp://bestbuybadservice.com/?p=10 *** Attorney General sues Best Buy for Bait-n-Switch: hxxp://techdirt.com/articles/20070524/142045.shtml *** Ohio Attorney General Sues Best Buy: hxxp://www.consumeraffairs.com/news04/best_buy_ohio.html *** Pennsylvania & L.A. employees sue Best Buy: hxxp://www.iht.com/articles/ap/2007/10/17/business/NA-FIN-US-Best-Buy-Lawsuit.php hxxp://www.spybusters.com/blog/2007/04/best-buy-geek-squad-sued-over.html *** Best Buy customers arrested for poor reasons: hxxp://www.geek.com/best-buy-is-having-people-arrested/ hxxp://www.gnn.tv/headlines/2054/Two_Dollar_Man_jailed_in_Baltimore_County *** Best Buy Geek Squad Pirates Software: hxxp://www.foxnews.com/story/0,2933,191593,00.html *** Best Buy Website advertises low prices; however, the in-store Website changes those prices so they are not honored: hxxp://bestbuybadservice.com/?p=10 hxxp://gadgetopia.com/post/5800 *** Best Buy store General Managers FORCED consumers to buy Xbox 360 system with accessories in order to be eligible to purchase the system--even though the Xbox 360 was advertised all by itself: hxxp://blogs.mercurynews.com/aei/2005/12/best_buys_new_o.html *** Price recording consumer DEFEATS Best Buy Management non-written "Discretion" in court: hxxp://siliconinvestor.advfn.com/readmsg.aspx?msgid=902346 *** Best Buy does NOT want customers "Comparison Shopping" in their stores because Best Buy OFTEN LOSES the comparison. Hypocritical Best Buy does NOT quote prices over the phone, and they do NOT allow you to write down prices in the store! hxxp://siliconinvestor.advfn.com/readmsg.aspx?msgid=902346 hxxp://query.nytimes.com/gst/fullpage.html?res=9E05E4DF143BF930A15750C0A961958260&sec=&spon=&pagewanted=all ************ Well, those were just a fraction of some of the other legal problems and consumer complaints Best Buy is having with customers. Just go to the Better Business Bureau website and see fore yourself...there are over 12,000 complaints against Best Buy in just the last three years! __________________ And just in case Best Buy wants to know why I am so angry at them, it's because Store 415 in Fort Gratiot, Michigan has the two rudest managers in the world: General Manager Dave B and Customer Relations Manager Brian S. I saw Brian S--the Customer Relations Manager of Store 415--deliberately hassle a 60 year old woman before, and I have even seen him hassle a disabled young man who has epilepsy. When I called Best Buy Corporation to report those problems, I was told that the General Manager Dave B literally told a complete LIE for his friend Brian S. Then, when I went to the store, those two guys literally bragged that Best Buy Corporate was "powerless to do anything against them" because each of them said "It is my store." They claimed that every situation would always result in a "he said, she said" situation, and they bragged that Best Buy Corporate would always believe their store managers no matter what happened...even though the abuse was on film at the store! In fact, Dave B bragged that any complaint against Brian S would "ultimately end up on his desk, and thrown in the trash." Best Buy will NEVER get my business again!

SalarianChemist
SalarianChemist

In fact, when I did research on the Internet, I saw that over the last three years, over 12,000 complaints have been made with the Better Business Bureau against Best Buy. Also, the states of Ohio, Pennsylvania, and Connecticut have all filed legal lawsuits against Best Buy for things like False Advertising, and failure to honor Warranty/Insurance/Exchange policies. I highly advise you to stay away from Best Buy!...And do NOT buy their Warranty/Exchange polices. Just ask the Attorney Generals of several different states, and they will explain WHY it is a waste of money with Best Buy!

grigjd3
grigjd3

The first BestBuy I ever went in had noticeably higher prices than other stores - yet for some reason, people kept going to BestBuy. Maybe it was that huge yellow tag sign on the giant ugly blue building. It's just so hard to miss. Anyhow, I hope the same price hike I saw doesn't happen to you all in the UK.

razgriz_101
razgriz_101

Squeets Ada =/= Walmart since Walmart own them. Anyway it doesnt really influence me much more anyway who ever has the lowest price on the game im buying, i buy it from there thats it cheapest means you have more cash to spend.I would only be extremely intrested if they were a lot cheaper but hey ho doesnt seem like it.

Irve
Irve

We already have walmart .. they bought Asda .. so we have stores that say ASDA ... part of the Wal Mart family family !!! FFS !!!

Squeets
Squeets

You guys might want to watch out... If Best Buy is successful... whats next...? Walmart is next... 6000 Walmarts will appear out of nowhere... watch your backs...

tawagivercetti
tawagivercetti

Now come to Australia we need better retail competition for my wallets sake....retail games here are way too expensive, but stupid boffins buy games for $120 each??!! When they can get it for 50-60% less online.....

Lum_Yatsura
Lum_Yatsura

Best Buy is excellent for their selection of DVD movies.

jrabbit99
jrabbit99

Why do we want a best buy? there hings are overpriced and can be found cheaper at small stores. The sales people aren't that helpful either. Whats the big deal then?

mmogoon
mmogoon

Maybe this will be an actual competitor to amazon/play.com.

DDR_Midian
DDR_Midian

"Now what I don't understand is how Best Buy's share in Carphone Warehouse fits in with this, since Carphone Warehouse are neither a general electrical retailer nor a gaming shop...?" Quite, both Carphone Warehouse and Curry's are, in my opinion, rubbish. Anyone in the UK with enough sense and internet access would either purchase games online or at least in a shop sorta, y'know... dedicated to games.

Msig
Msig

I have mixed feelings. Although this will drive up competition with that of the Dixons Group, Comet and others. As well as give the UK a needed alternative to in my opinion the horrible excuse of a shop, PC World. I fear it continues the domination of large business lead retail and will ultimately negatively affect the smaller independent retailers. But that's life I guess.

Generic_Dude
Generic_Dude

Great, now than can overcharge our European friends too.

bghattas
bghattas

I guess that will hurt the profits of Tesco....

Avenger1324
Avenger1324

More competition is good, as the PC World/Dixons/Currys mega-group have very little high street competition.

Strike_Zer0
Strike_Zer0

Pretty cool, competition is good for the market.

akiwak
akiwak

More competition for your money = GOOD

lanista
lanista

@raverrozza "mrsims thanks for that info. i always assumed it was mainly a gaming store but thats why in the story they linked it to currys which is a very similar store by the sound of the things." That solved my first question about who Best Buy are Now what I don't understand is how Best Buy's share in Carphone Warehouse fits in with this, since Carphone Warehouse are neither a general electrical retailer nor a gaming shop...?

aarun27
aarun27

:P Haha, I smell some meaty competition!

mrsims31
mrsims31

I didn't mean direct competition in the specializing sense; more in the way of "we sell games too" sense. As puablo stated, it's kind of a one-stop store that sells many different items. It will take away a lot of the casual gamers who don't track games much and maybe a few regular gamers looking for something on sale. But you're right; probably not gonna see any price wars.

twoism
twoism

Well, it's still not exactly any direct competition to GAME. I remember a few years back when there was Electronics Boutique, and GAME, and later Gamestation. EB bought GAME, GAME grew like crazy, then bought Gamestation. Best Buy will only rival stores like Curry's and PC World (as already mentioned in the article above).

puablo
puablo

Best Buy is easily my favorite store because they always carry a good selection of products at a nice price. I got my HDTV there, refigerator, washer/dryer, iPod, digital camera... and so on. It's nice because they don't work on commission so it's usually they just have semi-knowledgeable staff that don't pretend to know everything (and then be wrong). They aren't pushy. I enjoy getting my games there because I can go in, get my stuff, and get out without being harassed by the obnoxious employees at Gamestop. Ultimately Best Buy is great because every department is really good - DVDs, music, games, etc. It's like one-stop-shop but unlike Wal-Mart, doesn't suck.

clyde46
clyde46

I wondered how long it would take for US companies to make a move in the country.

raverrozza
raverrozza

mrsims thanks for that info. i always assumed it was mainly a gaming store but thats why in the story they linked it to currys which is a very similar store by the sound of the things.

mrsims31
mrsims31

For the record, Best Buy is a very broad mega electronics store that sales everything from computers and televisions to washers and dryers. Every so often they'll put a game on sale, but other than that its nothing special from a gamers standpoint. But, then again, I'm not real familiar with the game stores you have over there. At the very least, it will bring competition and that's always good but you're not likely to find anyone at Best Buy who can help you with game specific questions; they just don't put much focus there.

Chi-You-Man
Chi-You-Man

Finally someone comes along to rival Game, good!

raverrozza
raverrozza

which game is that? lol!i might have to pay a visit. theres been loads of time ive been in asking about future releases and they have just been so wrong. When they were introducing the 40GB ps3 i went down on the friday before the monday it was released. I had read it on the SCEE website and was just asking if they were dropping the price of the 60GB cos thats the one I wanted. The manager in game argued with me and told me there was no 40 coming out and that i was talking rubbish. he told me a sony representative was in that day and never mentioned it. he even told me that the dual shock 3 was out the next week and wouldnt believe me when i said it wasnt even out in japan! well i bought my ps3 on that monday in virgin and not game!lol! ive had loads of other times ive asked about release dates and theyve always been way off when other retailers have been right. but yeah deal of the week can be very good. the last game i got in game was oblivion for 22quid which cant be sniffed at.

HE_is_Dare
HE_is_Dare

@raverrozza - bad experience in Game much? I like my Game, the employees are hot (not like the geeks in Gamestation) and Deal of the Week is usually a good save.

raverrozza
raverrozza

Whats best buy like? It better not be like those gits in game. i hate that shop! ill always try and buy my games elsewhere!

rambo_ando
rambo_ando

Best Buy, the US consumer electronics shop, is planning to roll out more than 200 stores nationwide, according to a report by the Financial Times, after coughing up