Carphone Warehouse has announced that it will close its Best Buy stores, ending its attempt to compete with Currys and Comet and thwarting the company's ambition to become a major electronics retailer in Europe.
Carphone Warehouse is one of the major mobile phone sellers in the UK. The official declaration regarding this decision will be made along with Carphone Warehouse's half year results.
Best Buy, which is the largest American electronics retail company, joined with Carphone Warehouse to set up a 50:50 joint venture to be named Best Buy Europe last year, with the goal of becoming the number one consumer electronics retailer in Europe.
Last year, they started off by opening stores in Europe with the target of opening 200 stores in Europe by 2013.
The announcement comes after the opening of only 11 stores resulting in the loss of £83m. In an announcement to be made this week, it is expected that they will further declare a half year loss of £35m.
However, the closing of 11 Best Buy shops will not end the relationship between Best Buy and Carphone Warehouse, as Best Buy still has a 50 percent share in Carphone Warehouse's retail business.
A Best Buy Europe spokesman said, "We always said we would open 11 stores and then conduct a strategy review. We are now conducting our evaluation with our partners and will provide an update in due course," The Telegraph reports.