Best Buy in the UK is reported to be close to shelving its expansion plans after a sharp downturn in consumer demand for electronic and electrical goods.
The chain, which currently operates 10 out-of-town stores in the UK, has one more outlet due to open this year but is not expected to open any more beyond that reports The Sunday Times.
The business is carrying out a review of its future, and its management has already conceded that it will fall a long way short of its target of opening 80 stores by 2013, the newspaper added.
But the market has been hit by a slowdown as hard-up consumers, whose wages are failing to keep pace with rising prices, delay purchases of big ticket items such as TVs and stereo systems.
The squeeze has seen Comet-owner Kesa Electricals announce plans to close up to 22 stores amid reports it is considering selling its UK business. And Currys and PC World-owner Dixons Retail has already issued two profits warnings this year.
However, Best Buy in the UK is believed to be unlikely to make a final decision on its expansion plans by Tuesday when Carphone Warehouse announces its annual profits.
Best Buy stores offer initiatives such as a trade-in service where customers can receive discounts when they bring in their old televisions, 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.
It opened its first UK store, in Thurrock, in April 2010. Other stores have since been opened in locations including Hedge End in Southampton, Croydon, Merry Hill in the West Midlands, Derby and Aintree. Its next store is due to open in Enfield in coming months.
A spokesman for Best Buy Europe, which runs the Best Buy stores in the UK, said the company did not comment on rumour or speculation.