Sony to Close 20 out of 31 US Retail Stores

Sony_New_Retail_1

And the heads keep on rolling at Sony. After the company decided to close down its VAIO division, resulting in a massive loss for the year for the troubled electronic division, news spread in the last 24 hours of Sony employees who were suddenly left without a job. In the near future, Sony plans to cut 5,000 global jobs with 1,000 of those coming from the US. The worst hit part of Sony will be their San Diego division, which will lose 500 employees. This all came at the awkward time where Santa Monica Studios, one of the premier and most prestigious PlayStation game studios is also firing 50 employees and cancelling a high profile, internal project. With all of this news manifesting itself in a day’s time, Sony has also come to announce that will be closing the majority of their retail stores in the US.

According to Sony, the company will close 20 of their retail outlets, leaving only 11 stores standing. Mike Fasulo, President and COO of Sony Electronics:

 While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth. I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer. 

While the news in some ways isn’t a total shock, seeing how a majority of the Sony retail channels I’ve ever visited have traditionally been empty, it’s still another blow to the company’s image. Even worse is for the many employees who will now have to seek employment elsewhere. The list of stores that will remain open and those that will be closed is as follows:

11 Sony stores to remain open

Mall Location
Fashion Valley San Diego, CA Retail store
University Town Center San Diego, CA Retail store
South Coast Plaza Costa Mesa, CA Retail store
Stanford Palo Alto, CA Retail store
NY Flagship, Sony Plaza New York, NY Retail store
Roosevelt Field Garden City, NY Retail store
Walt Whitman Huntington Station, NY Retail store
Mall at Millenia Orlando, FL Retail store
Aventura Aventura, FL Retail store
Houston Galleria Houston, TX Retail store
The Americana at Brand Glendale, CA Retail store

*Sony retail store on SPE lot will remain open

 

Closing – 20 stores

Tysons, VA

University Village, WA

Galleria Dallas, TX

Forum Shops, NV

Pentagon, VA

Boca Raton, FL

Menlo Park, NJ

Las Americas, CA

Camarillo, CA

Aurora, IL

Gilroy, CA

Wrentham, MA

Pleasant Prairie, WI

San Marcos, TX

Cherry Creek, CO

Dolphin, FL

Century City, CA

Valley Fair, CA

Comcast, PA

Central Valley, N.Y. (Woodbury Common Outlets)

While Apple has seen great success with their retail channels as they become the highest grossing outlets in the planet by square footage, Sony has struggled to draw much attention to their channels. In early 2011, Sony launched a new retail initiative with a completely redesigned experience that was designed to help the company get back into the highly competitive retail environment. We went along with Mike Fasulo for the launch. Microsoft has also attempted to compete with Apple in the retail space and their success has been marginal at best. Despite that, Microsoft, unlike Sony commands a huge war chest and is able to sustain short term losses for a long term vision.

We’re once again truly saddened by the loss of jobs and negative effects on lives that these events tend to bring with them and wish those employees who are affected by this the best in this hard time.

Discuss:

Are you shocked that Sony is closing so many of its retail channels?

  • Martin

    :( Wow, century city just opened not too long ago. Bleak times indeed. I visited both century city and university village locations less than a year ago. Loved both but have to admit, their stores were empty while apples was packed in both locations. One can certainly not blame Sony as they have made herculean efforts to advertise and developed superior electronics to that of Samsung and Apple in the last year. But the market can be finicky and go straight for brand names and whats hot nowt. Such a shame.

  • Ana Helušić

    Falling apart

  • BillyHoWCR
  • http://www.about.me/sohrabosati Sohrab O.

    What’s worse about the Century City (I visit there often) is that it was their new flagship store. That’s where they kicked their new retail efforts off. Like you said though, there is an Apple Store 3 stores down and it’s half the size and it’s packed. The Sony store was a ghost town, the same as the Microsoft store a bit down from them.

  • http://www.about.me/sohrabosati Sohrab O.

    Yea, seems like things are unraveling for Sony rather quickly after the whole VAIO debacle.

  • http://www.about.me/sohrabosati Sohrab O.

    Yea, it’s interesting because it doesn’t seem like Sony knew what to do with their stores. They just figured that they’d build them and people would suddenly start shopping at them.

  • Ana Helušić

    In 5-10 years there will be no Sony, Kaz said 2 years ago that he will unify every division under One Sony, yep there will be One Sony and that is Sony Playstation, everything else is going to close
    http://www.japantoday.com/category/business/view/loss-saddled-sony-to-sell-its-tokyo-birthplace

  • http://www.about.me/sohrabosati Sohrab O.

    Thanks for that link Ana

  • Ana Helušić

    Np :)