Best Buy revealed in an email to Retail Dive that it is planning to open its first store in seven years. The new store is set to open in Farmington, UT, giving the retailer nine big-box locations in the Salt Lake City area.
“The Farmington area is an area that we have left underserved. Our nearest stores are both more than 15 miles away from the Farmington area,” a company spokesperson said in the email, noting that the shopping center where it will be located, Station Park, is one that “shoppers love.”
This news drops shortly after Best Buy’s announcement earlier this year that it plans to close all 257 U.S. Best Buy Mobile stand-alone stores by May 31st, due to the current mobile sales environment. Best Buy closed 18 stores in 2017 and 11 more in 2016, and the latest locations to be opened were in Mexico and Canda. Today, Best Buy has just over 1,000 stores in the U.S.
The retail industry is quickly approaching a tipping point. In 2017, retailers saw $3.53 trillion in sales last year, a 3.9 percent bump from 2016. Additionally, the National Retail Federation projects overall retail sales to grow between 3.8 and 4.4 percent in 2018, including a 10 to 12 percent boost for online and other non-store sales. That being said, there has been blood in the streets as 7,000 major stores announced closings in 2017-2018 alone, including Toys R Us. There is a clear shuffling in the industry and for retailers with a large physical footprint to stay competitive, there need to be more innovative solutions to improve customer experience, increase margins, and stay afloat.