Retail giant ‘pulls out’ of UK property deal
Dec 29 2010 Huddersfield Daily Examiner
AN American retail giant’s UK expansion plans have suffered a setback – after pulling out of a property deal at the last minute, it is claimed.
Best Buy, the world’s largest electricals retailer, stirred speculation about its level of commitment to the UK when it reportedly withdrew from a deal to open its first store in the North East – at the Team Valley Retail Park in Gateshead.
One property insider said he was surprised by Best Buy’s decision to pull out of one of Britain’s most sought-after retail parks.
“If you are trying to build a nationwide presence, it would be very surprising not to go there,” the source said. “It will be in any retailer’s list of top performers.”
It is understood that Best Buy withdrew from the deal with Land Securities while it was waiting for legal approval.
Newspaper reports claimed that Best Buy, which opened its first five UK stores in 2010, is well behind its initial target of opening five stores by last Christmas and 80 outlets by 2013.
Best Buy denied it is behind its targets and said it plans to open five more stores in 2011. That will bring the total to 11.
A spokeswoman for the retailer said: “Our roll-out plans have not changed and we have so far announced five new stores for 2011.
“We are in discussions with a number of property owners about securing a variety of potential store locations and markets across the UK.
“We will provide further updates as and when we can confirm agreed stores.
“Whilst we’re not currently looking at a specific property in Gateshead, we wouldn’t rule out the city and the North East in future.”
Best Buy announced two years ago that it was coming to Britain in a joint venture with Carphone Warehouse.
It opened its first UK store in April at Thurrock, followed by five more stores, including ones in Southampton, Derby and Liverpool.
Earlier this year Paul Antoniadis, the executive in charge of its introduction to the UK, left amid reports he was frustrated by the lack of progress.
The retailer is up against stiff competition from Currys PC World, Comet and the supermarkets.
Best Buy stores offer initiatives such as a trade-in service where customers can receive discounts when they bring in their old TVs, laptops and mobile phones.
Other offers include a price match guarantee on any product and a “green tech” zone selling electric cars, motorcycles, scooters and bicycles.
The retailer is taking efforts to instil a US-style work ethic in British staff seriously, with a rigorous nine weeks of “blueshirt” training at its specialist academy.
It also employs “Geek squads” to provide 24-hour technology support and advice.
