Best Buy chain is latest retail freeze victim

Carphone Warehouse’s Best Buy electrical megastore concept could become the latest casualty of the tough British retail environment next week.

The “big box” shops, a joint venture with a US partner, were launched three years ago with highly publicised plans for a 100-store chain that would act as a springboard for expansion across Europe.

But the timing of the launch meant the venture has struggled from the offset, affected first by the recession and then the current consumer spending squeeze. Consumers have cut back on big ticket items especially, while Best Buy has also suffered from low brand recognition in a battle over a shrinking market with other struggling electrical retailers such as Currys and PC World owner Dixons.

After £62 million of losses last fiscal year, the venture froze new openings, leaving it with 11 UK megastores.