Best Buy going by-by?

So i heard today that Best Buy is having a really hard time in the current market. Aparently the consumer driven economy is failing and probably as we all know, for more reasons then 1.

Yahoo...

Best Buy (BBY) CEO Brian Dunn resigned today. While Wall Street's immediate reaction was to drive the electronic retailer's shares higher on the resignation (read: firing), the news is unlikely to delay the company's descent into irrelevance and/or bankruptcy.

The article goes on to state that the internet is part of the reason behind Best Buys decline but i think its because the economy continues to tank.

Forbes...

Electronics retailer Best Buy is headed for the exits. I can’t say when exactly, but my guess is that it’s only a matter of time, maybe a few more years. Consider a few key metrics. Despite the disappearance of competitors including Circuit City, the company is losing market share. Its last earnings announcement disappointed investors. In 2011, the company’s stock has lost 40% of its value. Forward P/E is a mere 6.23 (industry average is 10.20). Its market cap down to less than $9 billion. Its average analyst rating, according to The Street.com, is a B-.

They continue to talk about poor service and bad sales technique which i personally believe is a cosmic reflection of the crap my generation seems to be bursting at the seems with. I personally think this is just another domino in a long line of dominos that are falling and the trend will continue untill we are no longer in an egoic state of mind and are forced to change our mindsets and ways as not only a nation but as a planet.

Originally posted by onequestion

Your post going byby?

reply to post by onequestion


Candidate - 1

onequestion-


question 1-



no.

It already went by-by??

ETA...this is going to affect a ton of folks and their families... Sadly, I think we will be seeing more of this in the next year or so though. Trickle down effect.

Best. Thread. Ever.

But In seriousness I bet the poster was trying to talk about this article here which mentions trouble for Best Buy and the possibility of going private once again. Which is never good for a company.

www.heraldextra.com...

Not sure what happened to the post.

Originally posted by amongus

Originally posted by onequestion

Your post going byby?

Cracked up thanx to this comment!

My apologies. Accidentally delete everything right before posting. I edit to add information. As whoever has read my post before also knows i keep it short and sweet lol, but not that short!

reply to post by jjf3rd77


Actually bankrupt. This is going to hurt a lot of people.

Let me add context because this is a big deal.

Best Buy has 180,000 employees. Taken strait from their website...


Best Buy...

At the end of fiscal 2011, we employed approximately 180,000 full-time, part-time and seasonal employees. We consider our employee relations to be good. There are currently no collective bargaining agreements covering any of our employees, and we have not experienced a strike or work stoppage.

I really hope that it doesnt go "by-by" because I find their customer service excellent. Ive returned a few game consoles that have broken down on me and no questions asked, they give me a new one. Granted, I did have insurance BUT they didnt make me go through the hassle of leaving it for repair and whatnot. The geek squad took one look at it and send me on my way to get a new one.

Hopefully they get the boost they need during the upcoming holiday season

reply to post by onequestion


Speaking only from what we have seen from them since they opened here in Anchorage, I do think it's more than just market share.

Horrible customer service.

Bad management.

Higher prices often than even small local stores on the same products.

The worst thing I've noted is if you go to their website and decide what to buy before you walk in, they seem to purposefully ring up items higher than the listed price on the Internet. What happens is if you say nothing you pay to much, but if you print it out before going in they immediately change the price. That has not happened to me only once, but four visits in a row. Now I always go with a printout in hand knowing it will be rung up for a higher price.

I can't be the only one that has happened to over and over again and others certainly notice. So why should a person return?

The number one factor for any company to survive is loyal customers. It's hard to be loyal when nobody will help you even when half of them are doing nothing. It's hard to be loyal when they repeatedly ring up the purchase for a higher price.

...and even worse the one time I called to say something, it took most of an hour and being hung up on multiple times and the only words I said is could I please be connected to the Store Manager or General Manager.

Sadly if they have a good sale or I need something for my computer, we have little choice. CompUSA was not bad but they shut their doors because Best Buy drove them out of the city. We are far worse off now.

Darn right I do most buying on the Internet now or from local merchants, even if they are higher priced. I'd rather support them and pay extra anyway. They give excellent service and are there for you if you need them. The one time I emailed for help from Best Buy they simply ignored the email's. I called and was told they would call back and of course they did not.

Sorry to say but I have no confidence in Best Buy. I stopped shopping with them years ago due to horrible customer service from the sales floor to the returns counter. Geek Squad would break peoples computers to justify repairs and sales reps were usually clueless.

What finally stopped me ever going there and driving 40 minutes out of my way to shop Fry's or Microcenter was the pricing. Everything was sold as high end fluff that had no real bearing on performance for electronics. A 15 dollar cable at fry's that has given me 5 years of perfect performance was 60 at Best Buy.

Bad service and bad prices finally paid off.

reply to post by Blaine91555


You're right on all counts. These are the same experiences I and a lot of other people have had. And it really steams me that a POS like this comes along and runs better stores out of business.

As far as the prices being higher in the store than on the Internet, they were busted for that once, and it was pretty big news. They'd have something on the Internet for one price, but then it would be higher in the store. If you called them on it, they'd show you the website on the store computer and show you how you must have been mistaken. Of course they were fairly and solidly busted, eventually. They claimed it was accidental and that they wouldn't do it anymore.

Anyway, like you, I try to keep as much of my business local as possible. Sometimes, in an emergency, I don't have much choice. But you can be sure that I don't go to Best Buy if I can avoid it....

Yep -- this doesn't surprise me at all. A couple of months ago, my husband purchased a projector unit for our media room through the Best Buy website. He paid for it with his debit card with the intention of picking it up in the store that day. We go to the customer service desk at the store to pick it up, and we are told that they had the projector right there, but they couldn't hand it over to us until the payment cleared. Stunned, we asked how long will this take? They couldn't answer - it could be in the next 15 minutes or 3 hours. ????? We asked if we could just cancel the website purchase and purchase it with our debit card right there in the store. Yes, but we had to cancel it through their 800-number. So.... we had to get on the phone right there in the store to get the purchase cancelled. After about 20 minutes on the phone, the purchase was cancelled, and they handed the projector over to us when we ran our debit card through. Absolutely insane. We'll never shop there again.

Geek Squad is always to busy socializing to help me when I go in Best buy. Way over priced. I don't mind a 2 or three day wait from Amazon or Circuit City.

Stupid business models should fail when they can't compete.

Very good points, let me add two more: iTunes and Netflix. Movies and CD's used to take up about 1/5 to 1/4 of every Best Buy. Now look at them. Even the game and computer software areas are fairly sparse. Consider space for camcorders and digital cameras...although iPods and cell phones do very well for candid video and photography.

Best Buy is suffering from same thing that the department stores they replaced... inability to adapt to a changing market. Sears, JC Penny and Even Circuit City failed to adapt to the Big Box Store approach made famous by WalMart and followed fairly closely by Best Buy.

Add to it that Lowe's and Home Depot (which are Bid Box hardware stores) are killing Best Buy on stoves, refrigerators, freezers washer and dryer prices (at the expense of selection) and all Best Buy has left is laptops really. And they tend to be a little overpriced or a little out of date. And the profit margin on laptops is pretty low to begin with unless you buy a boatload of them.

Unless management can come up with a solid plan on how to adapt to the current economy, Best Buy is done. Which is too bad really. I have bought quite a few things there over the years.

I am almost positive that the cause is totally routed in the internet. Ebay stores and internet discount chains have to be taking a deep toll on what Best Buy sells. In my own personal experience, if I am looking for a particular gadget, I post the item description on Bizrate, Amazon and Ebay to expose the cheapest prices I can get. I think many others do the same, and well... just look how these sites are booming....

Pretty soon people are going to start freaking out and eating each others faces. Oh wait........

Someone want to explain to me why this isn't considered "reliance on the state", aka welfare..

Since the topic is shifting to, "This is going to hurt a lot of people." Is not corporate reliance the same as welfare or aka "nanny state"?