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CE Pro Community | Is Best Buy Going Out of Business
 
   
 
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Is Best Buy Going out of Business
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Is Best Buy Going Out of Business
Posted: 04 January 2012 11:53 AM   [ Ignore ]
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Yes, according to Forbes, which says it “can’t say when exactly,” but that “it’s only a matter of time, maybe a few more years.”

Here are some of the key metrics Forbes mentions: “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-.”

But the even bigger problem, according to Forbes, is the sales staff.

But my friend decided to buy some other blu-ray discs.  Or at least he tried to, until we were “assisted” by a young, poorly groomed sales clerk from the TV department, who wandered over to interrogate us.  What kind of TV do you have?  Do you have a cable service, or a satellite service?  Do you have a triple play service plan?

He was clearly—and clumsily–trying to sell some alternative.  (My guess is CinemaNow, Best Buy’s private label on-demand content service.)  My friend politely but firmly told him he was not interested in switching his service from Comcast.  I tried to change the subject by asking if there was a separate bin for 3D blu rays; he didn’t know.

The used car style questions continued.  “I have just one last question for you,” he finally said to my friend.  “How much do you pay Comcast every month?

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Posted: 04 January 2012 02:51 PM   [ Ignore ]   [ # 1 ]
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That was a good article which is written from the perspective of a savvy consumer.  It sure seems obvious to most of us that Best Buy does not have a reputation that matches their marketing message.  Without some very creative change at the top, the end seems inevitable.  Maybe they need to adopt a more Radio Shack model.  This is a fun read from the past:
http://www.theonion.com/articles/even-ceo-cant-figure-out-how-radioshack-still-in-b,2190/

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Morgan Harman
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Posted: 24 January 2012 09:51 AM   [ Ignore ]   [ # 2 ]
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As I am from Canada, I am wondering how this will affect Future Shop, which is owned by Best Buy?

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