Minneapolis, MN — Consumer Electronics retailer, Best Buy has revealed that its third-quarter profits where down a staggering 77 percent in the face of current U.S. economic turmoil.
“The historic slowdown in the economy and its effect on our business over the past 90 days have been the most challenging consumer environment our company has ever faced,” said Brad Anderson, vice chairman and CEO of Best Buy. “We believe that there has been a dramatic and potentially long-lasting change in consumer behavior as people adjust to the new realities of the marketplace. We also believe that customers will continue to reward those retailers who understand their needs and desires, and offer relevant solutions at fair prices. Yet we clearly recognize that these changes require us to make significant adjustments to our present cost structure.”
Among those structural adjustments is making all of the company’s corporate employees eligible for a voluntary “separation package” in an attempt to reduce corporate expenses. According to Best Buy, the package is an incentive for employees to leave the company by offering a significant increase in the company’s severance offer. The company also stated that involuntary reductions in corporate staff may be required, depending on the outcome of the voluntary program. Best Buy also noted that it will open fewer stores in the U.S., Canada, and China.
The company third-quarter profit was $52 million in the three months ending November 29, down from $228 million in the same period last year.