Best Buy CEO resigns amid internal investigation

And a couple weeks ago, the chain unveiled a massive restructuring plan that calls for closing 50 of its U.S. big-box stores and opening 100 small-format stores focusing on its burgeoning mobile business that focuses on cell phones. It’s also planning to cut $800 million in costs over the next five years.

But analysts say there’s more work to be done. Gary Balter, an analyst at Credit Suisse, says the company should close even more stores and take better advantage of its fast-growing mobile business. After all, Best Buy’s mobile business makes up nearly one-third of the retailer’s profits, he says, but accounts for less than 10 percent of the overall square footage.

Best Buy faces an uphill battle to find the right CEO,” said Michael Pachter, an analyst at research firm Wedbush Securities. “Mr. Dunn’s replacement must be prepared to manage the transition from big box to small box format. A CEO with this experience will be difficult to find.”

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