It seems that the big stores have a tough time competing for integration.  Just like for many integrators one of the last exciting growth decisions is opening a showroom.  Somehow the two are just a difficult mix.  I think because integration requires covering too much geographic territory that doesn’t justify the expense of a large footprint retail location and likewise, a big store only attracts customers that are close - which is just not enough to support the skills needed for custom integration.  You can successfully deliver and even setup some basics with a repeatable process (something important for even the custom shops to embrace) but for the skilled craftsman (or craftswoman) who thrive on tackling what’s next - well, you get the picture.  I think it’s all good news.  The market is growing and there is plenty of room.  Best Buy has made it this far, I think I agree with Robert that they aren’t going anywhere - but no company should ever think they are too big to fail.  (or too small to thrive

Happy integrating!

More bad news today for Best Buy with its Q4 earnings dropping 16 percent.

Weak demand for 3D and IPTVs, and a $222 million restructuring charge to close stores in China and Turkey, led to a 16.4 percent profit decline for Best Buy during its fiscal fourth quarter.

Net earnings, unadjusted for the one-time charge, totaled $651 million for the three months, ended Feb. 26, on net sales of $16.3 billion. Revenue slipped 1.7 percent as comp-store sales slid 4.6 percent worldwide.

In the U.S., fourth-quarter revenue slipped 3.7 percent to $12.1 billion and comp-store sales fell 5.5 percent. Operating income declined 10.3 percent to $986 million.

Things have become so bad for Best Buy that CNN wrote a story called “Best Buy doesn’t live up to its name.” It’s a great read, I suggest you guys take a look. The writer surveyed some Twitter followers about their thoughts on what Best Buy needs to do. There were some interesting responses:

@mapleleafnj noted this bleak future outcome if Best Buy didn’t get its act together. “Circuit City, Tops, Crazy Eddie… Most tech shops go broke sooner or later.”

Another tweeter known as @FrankDaTrader pointed out that Best Buy is basically like a country wide showroom for Amazon. In other words, you can go to the store to see and play with a product and then you just buy it online instead.

Wow Steve.  Thanks for this.  Very interesting. Integrators need to make sure they are selling their brain power and not black boxes or we will be in the same boat.

This is from TheStreet:

Best Buy (NYSE:BBY) hit a new 52-week low Monday as it traded at $28.60 compared with its previous 52-Week low of $28.65. Best Buy is changing hands at $28.62 with 230,703 shares traded as of 9:36 a.m. ET. Average volume has been 7.8 million shares over the past 30 days.

I haven’t been there for a while but I know it has some of the best stuff I got. I don’t really think it’s doomed. It might just be a stage.