Electronic retail giant Best Buy announced the closing of all of its 11 stores in the UK.
Best Buy failed to mirror the success they have in the US making a loss of £46.7million in the past year.
It failed to take any market share from its competitors such as Comet and the online threat of Amazon.
It failed to compete on both price and service. In such a saturated market they were doomed to fail.
The company blames the significant loss on high set up costs it incurred and the high priced mass marketing platforms of communication they used.
All 11 of the shops are expected to be closed by the end of the year.
The decision leaves over 1000 jobs at risk but the company states that they would hopefully be employed within the Carphone Warehouse business.
The closure of the UK stores marks a major embarrassment for the world’s largest electronics retailer who made big claims when entering the UK market after completing the acquisition of 50 per cent of Carphone Warehouse’s retail division in May 2008 for £1.1bn.
Best Buy states that it needs to focus on strengthening its business in the US against the aggressive competition from discount and online retailers.
Best Buy will continue to live on in the UK in small outlets within Carphone Warehouse shops.