A Beloved Tech Retailer now warns of new layoffs even as the company navigated through a period of consumer electronics demand.
Best Buy warned of another year of softer sales and said it would lay off workers and cut other costs across the business.
CEO Corie Barry offered few specifics, but said the company has to make sure its workforce and stores match customers’ changing shopping habits.
Cuts will free up capital to invest back into the business and in newer areas, such as artificial intelligence, she added.
“This is giving us some of that space to be able to reinvest into our future and make sure we feel like we are really well positioned for the industry to start to rebound,” she said on a call with reporters.
Even though the company has gotten by, Best Buy has dealt with slower demand in part due to the strength of its sales during the pandemic, reports CNBC.
Like home improvement companies, Best Buy saw outsized spending as shoppers were stuck at home.
Plus, many items that the retailer sells like laptops, refrigerators and home theater systems tend to be pricier and less frequent purchases.
The retailer has cited other challenges, too: Shoppers have been choosier about making big purchases while dealing with inflation-driven higher prices of food and more.
They’ve also returned to splitting their dollars between services and goods after pandemic years of little activity.
Even so, Best Buy put up a holiday quarter that was better than feared.
In the three-month period that ended February 3, the company’s net income fell by 7% to $460 million, or $2.12 per share, from $495 million, or $2.23 per share in the year-ago period.
Revenue dropped from $14.74 billion a year earlier.
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Also Read: Supermarket With 200 Stores Is Now Closing For Good
Other Economy News Today
A restaurant in California now announces an unexpected closure after 25 years of businesses, sources report.
The Chevys Fresh Mex establishment in Emeryville – around 10 miles from San Francisco – will close down shop on Monday April 22, reports The-Sun.
The chain was renowned for its famous oven ‘El Machino‘, which could produce tortillas every 53 seconds.
Unfortunately, more than 60 workers are scheduled to lose their jobs once the restaurant closes.
News of the pending shutdown has left diners in mourning, says The-Sun.
“It was a good location. Went there many times with the guys, dates, birthdays,” one customer said.
“It’s a beautiful spot, maybe a classy joint will move in,” another posted online.
“What is going on?!! Seriously, what are we going to be left with?” a third fan lamented.
Fans said they flocked to the restaurant to enjoy the view of the waterfront.
“If you’re ever in the Emeryville, California, area and want a million dollar view from your patio table at an affordable restaurant, Chevys Fresh Mex restaurant is the place to go!” a diner said.
“After 25 dedicated years in the Bay Area community, Chevys will be closing its Emeryville location in April,” Mike Johnson, the COO at Xperience Restaurant Group – the parent company of Chevys – told The U.S. Sun.
“Unfortunately, we were unable to reach a lease renewal agreement, leading to this difficult decision.
The restaurant’s last day of business will be April 22, 2024.
We are thankful for our loyal diners and, especially to our committed team members, who have tirelessly contributed to serving our Bay Area community with the fresh cuisine for which we are known.”
“Chevys will continue to operate throughout eight additional Northern California locations and beyond, including Union City, Vallejo, and South San Francisco.”
Chevys was founded in Alameda in 1986 but the chain has restaurants across the US.
It also has a presence in Florida, South Dakota, Minnesota, Missouri, Virginia, and New Jersey.
Also Read: This Massive Mall Retailer Is Now Closing In California
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