Best Buy Co. Inc. gradually continues to optimize its U.S. real estate portfolio.
The Minneapolis-based retailer’s key focus has been on occupancy cost reductions through both store closings and renegotiated leases. Over time, the company said it believes there is an opportunity to trim $400 million in costs in the U.S., Canada and Mexico.
Through the first 11 months of its 2013 fiscal year, the company has reported closing 47 large-format stores and expects to close another five to 10 large-format stores in the next fiscal year.
However, it is also planning to move forward with new stores in a small number of selected and opportunistic markets, including 12 new Best Buy Mobile stores, 10 Magnolia Design Center (stores-within-a-store), and 18 to 25 Pacific Kitchen and Home (stores-within-a-store).
The retailer said it has commitments for the purchase and construction of approximately $31 million in new facilities and had entered into lease commitments for land and buildings for 11 future locations.
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