Skip to content

Best Buy Stores Dying A Slow Death

04/17/2012

Best Buy has been in the news quite a bit of late. Mostly for not so good things.

The company lost $1.7 billion in the most recent quarter. Then the closing of 50 of its big box stores and cutting 400 corporate jobs was announced. Next CEO Brian Dunn resigns. And if that’s not enough, Best Buy begins a probe into Dunn’s personal behavior. This reads more like the outline of a movie than the reality it is.

Best Buy finds itself in an extremely difficult position – one that several other big retailers are facing as well…perhaps just not as publicly. Best Buy’s quandary comes from two common challenges for retailers. First consumer behavior is ¬†changing – due in part to the economy but also as technology (particularly mobile) and eCommerce continue to reinvent consumer interaction with sellers. Second is competition. Plain and simple – Best Buy is getting hammered by Amazon, Apple and even Target.

Best Buy’s fundamental problem is that there is virtually nothing you can buy at Best Buy stores that isn’t cheaper or more convenient to buy online. When you consider online sources, Amazon may come to mind first, then others such as Walmart.com, etc. but not BestBuy.com.

The company has other problems but until it addresses this 800 lb. gorilla in the room it is doomed to continue the current slow death it is experiencing.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: