Best Buy will exit Mexico as it scales back during COVID-19 crisis

By Daina Beth Solomon

MEXICO CITY, Nov 24 (Reuters) - Best Buy Co Inc will close all its stores in Mexico, the company said on Tuesday, as it anticipates weaker Christmas-season sales amid a spike in COVID-19 cases.

The electronics retailer operated as many as 49 stores this year in Mexico, its smallest market. The vast majority of Best Buy stores are located in the United States, with more than 170 in Canada, according to a tally on its website.

"During the quarter, we made the difficult decision to exit our operations in Mexico," Best Buy Chief Executive Corie Sue Barry said in a call with analysts to discuss third-quarter results.

"I want to thank the teams in Mexico for their tremendous work over the past several years. They should all be incredibly proud of their accomplishments."

She said the decision came as the company examined its business "from top to bottom," including areas where it could cut back.

"We viewed it as critical that the outcome of this analysis would ensure our focus and resources are closely aligned with the opportunities we see in front of us," Barry said.

She did not specify how many jobs would be lost.

Mexican newspaper El Financiero reported that Best Buy will shutter its Mexican stores beginning Dec. 31, citing comments from Fernando Silva, president of the company's Mexico unit.

According to El Financiero, Best Buy already closed eight stores in Mexico this year, leaving it with 41 locations.

"The effects of the pandemic have been deep, and it's not viable to keep our business in Mexico," Silva said in the El Financiero report.

Best Buy's third-quarter sales and profit beat market expectations, yet the company warned that growth looked uncertain for the remainder of the year.

(Reporting by Daina Beth Solomon Editing by Bill Berkrot)