Sales seemed to be great (at least from what I understand) so why did Best Buy lay off 5000 store employees last month!? They're not a struggling business. I do not and probably will never understand such heartlessness.
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Another reason is that a lot of people are doing many more of their purchases online, and that means that fewer stores (possibly with fewer people) will be needed. The move to online commerce is affecting every retailer, big and small, and Best Buy is no exception.
pricing pressure from online retailers hurt them. my city (omaha) has 3 stores, if im spending 2k on a tv, even if there is only one store im still driving to where that store is. we also have a nebraska furniture mart here and that dwarfs bestbuy and its selection of TV's is better then a boutique electronics retailer. heck the tv section is as big as a small bestbuy store. they only have 1 store in a city. i think that's the best model for most cities. if the price tag is high, then the customer will come to you even if it means traveling a longer distance.