US ELECTRONICS giant Best Buy is to open its first store in the Republic next year, following its purchase of a 50 per cent stake in Carphone Warehouse, which operates 70 outlets in the State, for £1.1 billion.
Stephen Mackeral, chief executive, Carphone Warehouse Ireland, said the funds would be used to pay down debt and for investment in retail expansion. Carphone Warehouse operates 2,400 stores in nine European countries.
Best Buy is the world's largest consumer electronics retailer, with annual sales of more than $25.4 billion, employing over 150,000 staff in 1,314 stores.
It usually operates superstores of 40,000sq ft, equivalent to a large supermarket. The number and location of the Best Buy outlets planned for the Irish market will be announced next month.
Given the size of the typical Best Buy outlet, it is unlikely that existing Carphone Warehouse outlets will be rebranded. Best Buy is more likely to base itself in retail parks.
Carphone Warehouse opened its 70th retail outlet in Co Roscommon yesterday and Mr Mackeral said the company planned to open 10 new stores this year.
"We are looking at a new opening in Carrickmines, one in Cork and two more in Dublin and it will be 10 in total," Mr Mackeral said.
Mr Mackeral said consumer electronics was the fastest growing retail sector in Europe in the last five years and is worth an estimated €114.1 billion a year.
